TobaccoReporter logo

Category: Business & Finance

  • Oettinger Davidoff Posts 2.5% Sales Growth

    Oettinger Davidoff Posts 2.5% Sales Growth

    Oettinger Davidoff reported 2025 sales of CHF 545.3 million ($680 million), up 2.5% in real terms, driven by growth in its premium cigar portfolio. The Davidoff brand posted a 2.4% sales increase, while Zino grew 16.1%, supported by strong performance in the company’s Partner Markets & Duty Free EMEAA region and continued momentum in the U.S. market. Handmade premium cigar production totaled 36.6 million cigars, down 4.9% from 2024, as the company adjusted output to reflect changing market conditions.

    The company said it continued investing in manufacturing, opening a new blending center in the Dominican Republic and expanding its Honduras facility with additional box-making capacity and a new fermentation complex. Oettinger Davidoff also opened seven new retail stores and renovated four locations during 2025, with plans to open nine more boutiques in 2026. The company said the investments support its five-year Aspire727 strategy, which focuses on brand growth, operational excellence, and expanding its position in the global premium cigar market.

  • 22nd Century Reportedly Losing Key Customer

    22nd Century Reportedly Losing Key Customer

    According to the Winston-Salem Journal, 22nd Century Group received a 180-day termination notice from Smoker Friendly International, ending their exclusive private-label manufacturing agreement effective Jan. 1, 2027. The contract, signed in January 2025 and originally set to run for five years, covers the production of cigarettes and filtered cigars for the retailer’s network of more than 800 independently owned stores.

    The loss of the contract would represent a significant setback for 22nd Century, which derives nearly all of its revenue from manufacturing private-label traditional cigarettes and filtered cigars despite being known for its FDA-authorized very-low-nicotine (VLN) cigarettes. According to the WSJ, in the first quarter, the company’s traditional cigarette sales fell to $2.85 million from $5.01 million a year earlier, while filtered cigar sales declined to $873,000 from $1.1 million. The company employs about 40 people at its Mocksville, North Carolina, manufacturing facility.

    The contract termination comes as 22nd Century continues a financial restructuring that began in 2023, including reverse stock splits to maintain Nasdaq listing compliance and workforce reductions. While its VLN cigarettes remain the only combustible cigarettes authorized by the FDA as a modified-risk tobacco product, the company has struggled to generate meaningful sales despite expanded distribution, and the current FDA has shown less emphasis on very-low-nicotine cigarettes while authorizing additional flavored e-cigarette products.

  • Ex-LEO Breaking into Texas Pouch Market

    Ex-LEO Breaking into Texas Pouch Market

    Patriot Pouch announced the launch of its U.S.-made, tobacco-free nicotine pouches for retail and online sales, positioning the brand as a domestically manufactured alternative in the oral nicotine category. The company currently offers 6 mg nicotine pouches in four flavors, with 9 mg and 12 mg strengths planned, and said the products are available through its website and select gas stations and vape shops in the Weatherford, Texas, area. Patriot Pouch said wholesale pricing is $5 per can with a suggested retail price of $7.49, with current production capacity at 1,000 to 1,500 units per month.

    The company said its nicotine pouches are manufactured entirely in the United States and are marketed as tobacco-free products. Patriot Pouch was founded by Alex Duncan, a retired law enforcement officer and former U.S. Senate candidate in Texas, and is partnering with Diamond Hill Grassroots Media LLC for marketing and outreach.

  • Payment Providers Warn Retailers About Illicit Vapes

    Payment Providers Warn Retailers About Illicit Vapes

    Major U.S. payment providers and fuel retailers are warning merchants against selling unauthorized vaping products as enforcement against the illicit market intensifies. According to Reuters, Fiserv subsidiary CardConnect, along with BP, Marathon Petroleum, and Valero, advised partners over the weekend that selling unauthorized e-cigarettes could result in significant fines, loss of payment processing services, or other compliance actions. The warnings follow pressure from a coalition of U.S. state and local law enforcement officials and come after Mastercard cautioned it would investigate transactions involving illegal vape sales.

  • Vuse Unveils Collaboration at Berlin Fashion Week

    Vuse Unveils Collaboration at Berlin Fashion Week

    BAT Germany’s Vuse announced the expansion of its partnership with designer Marina Hoermanseder, unveiling a custom case for the Vuse Ultra device and Ultra Smart Pods during Berlin Fashion Week as part of the designer’s Spring/Summer 2027 show. Inspired by Vuse flavors, the accessory will be offered in three color variants — True Blueberry, Strawberry Fuchsia, and Elegant Tobacco — and will go on sale in October for €29 through Vuse’s website, selected retail locations, and the Vuse Loyalty Club. Following a successful collaboration with the designer last year, the new collection is part of Vuse’s “Follow your vibe” campaign, which emphasizes design, flavor, and personal expression.

  • Capital Group Increases KT&G Ownership to 8.22%

    Capital Group Increases KT&G Ownership to 8.22%

    U.S.-based investment manager Capital Research and Management Company increased its stake in South Korea’s KT&G to 8.22%, continuing a series of purchases that began in May and signaling growing confidence in the tobacco company’s international growth strategy. Capital Group now holds about 8.53 million shares, up from 7.21% in June and 5.61% in May, according to regulatory filings.

    KT&G said the increased investment reflects recognition of its growth potential as the company continues to expand overseas, following record first-quarter international cigarette sales of 559.6 billion won ($363.7 million). The company reported first-quarter revenue of 1.7 trillion won ($1.1 billion), and operating profit of 364.5 billion won ($236.9 million), up 14.3% and 27.6%, respectively, from a year earlier, and said it plans to introduce a new shareholder return policy later this year.

  • Netherlands Provided PMI €1M for Subsidized Carbon Improvements

    Netherlands Provided PMI €1M for Subsidized Carbon Improvements

    The Dutch government awarded more than €1 million in climate subsidies to Philip Morris between 2023 and 2025 under its VEKI program, which supports industrial investments aimed at reducing carbon emissions. The funding was used at the company’s Bergen op Zoom factory to replace a natural gas installation with a heat pump system that reuses waste heat from production, improving energy efficiency and lowering emissions. Philip Morris received €373,000 in 2023, €560,000 in 2024, and €103,000 in 2025, according to Dutch broadcaster RTL Z.

    The subsidies drew attention because they were awarded to a tobacco manufacturer despite the Netherlands’ broader efforts to reduce smoking through higher tobacco taxes and tighter retail restrictions. The Ministry of Climate and Green Growth said the sustainability program operates independently of tobacco control policy, arguing that while tobacco production remains legal, manufacturers are eligible for climate funding if they meet the scheme’s requirements. The ministry emphasized that the subsidies support emissions reductions rather than tobacco production.

  • Cyclone Publishes Nicotine-Free Vape, Pouch Data

    Cyclone Publishes Nicotine-Free Vape, Pouch Data

    Cyclone Pods published complete third-party laboratory test results for its nicotine-free vape and botanical pouch product lines, including the testing laboratories, analytical methods, and individual sample findings rather than summary data. The company said its Gust Pro and Lightning vape products were tested by ISO 17025-accredited Legend Technical Services using LC-MS/MS, with nicotine, diacetyl, and vitamin E acetate reported as not detected in 15 of 16 samples at the stated detection threshold. The company also disclosed the one sample in which a trace amount of nicotine was detected.

    Its Focus Pouches were tested by A2LA-accredited Certified Laboratories using ICP-MS and HPLC methods, with all pesticides and residual solvents reported as not detected, heavy metals measured at trace levels, and caffeine testing at 113% of the labeled amount. Cyclone Pods said the publication of complete laboratory reports, including methodologies and sample-by-sample results, is intended to provide greater transparency for retailers and consumers regarding its nicotine-free product portfolio.

  • FDA Issues MRTP Orders for 20 Zyn Products

    FDA Issues MRTP Orders for 20 Zyn Products

    The U.S. Food and Drug Administration issued Modified Risk Tobacco Product orders for 20 Zyn nicotine pouch products manufactured by Swedish Match USA, making Zyn the first nicotine pouch brand authorized to market reduced-risk claims compared with cigarettes. The FDA-authorized claim states that using Zyn instead of cigarettes lowers the risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis. The authorization applies to 10 Zyn flavors in both 3 mg and 6 mg nicotine strengths and builds on the products’ January 2025 authorization for sale through the FDA’s premarket tobacco product application pathway.

    The FDA said its decision followed an extensive scientific review of the products’ relative health risks, consumer understanding of the claim, youth use data, and overall population health impact. The agency concluded that the modified-risk claim is scientifically supported, that consumers understand its meaning, and that allowing the claim is expected to benefit public health. The authorization requires Swedish Match USA to conduct post-market surveillance and behavioral studies, and the orders will expire after five years unless renewed. The FDA also noted it retains the authority to withdraw the orders if continued marketing no longer benefits public health, including if youth uptake increases.

    Separately, Philip Morris International said the decision expands its portfolio of FDA-authorized modified-risk products, which also includes IQOS heated tobacco products and General snus. PMI U.S. CEO Stacey Kennedy said the authorization provides adult nicotine consumers with FDA-reviewed, science-based information about the health benefits of switching completely from cigarettes to Zyn.

  • Drew Estate CEO Glenn Wolfson Passes

    Drew Estate CEO Glenn Wolfson Passes

    Drew Estate has announced the passing of its CEO, Glenn Wolfson, who led the company since 2016. During his tenure, Wolfson oversaw a significant transformation of the premium cigar manufacturer, strengthening its operations, expanding its market position, and reinforcing its commitment to retailers and consumers while preserving the company’s distinctive culture. Founder and President Jonathan Drew and the executive team praised Wolfson’s leadership, describing him as a transformational executive whose influence extended across the premium cigar industry. Drew Estate said its executive team will lead the company until a new CEO is appointed.