Imperial Brands announced it has acquired Black Buffalo in a deal valued at $150 million upfront, with additional performance-based payments over the next three years, as the company looks to expand its position in the fast-growing U.S. oral nicotine category. The acquisition gives Imperial and its U.S. subsidiary ITG Brands a stronger foothold beyond traditional nicotine pouches through Black Buffalo’s tobacco-free long cut and pouch products designed to replicate the experience of moist smokeless tobacco.
Founded in 2015 and manufactured in North Carolina using U.S.-grown leafy greens, Black Buffalo has built a growing presence in the U.S. modern oral segment that has generated roughly $6.6 billion in sales over the past year and continues to grow at double-digit rates. While Imperial’s existing Zone pouch brand recently reached about 2.8% national market share across more than 109,000 U.S. stores, the company said Black Buffalo’s differentiated positioning complements its existing oral portfolio and strengthens its long-term next-generation products strategy as cigarette volumes continue to decline globally.
