Tag: 22nd Century Group

  • 22nd and Core-Mark and Eby-Brown Partner

    22nd and Core-Mark and Eby-Brown Partner

    Photo: 22nd Century Group

    22nd Century Group has established new distribution partnerships with Core-Mark International and Eby-Brown Company, two of the largest convenience store (c-store) distributors in the United States.

    “22nd Century’s new partnership agreements with two of the largest, most respected convenience store distributors in the United States make possible the launch of VLN cigarettes in virtually every key U.S. market we are targeting in our state-by-state, region-by-region rollout strategy,” said John Miller, president of tobacco products for 22nd Century Group, in a statement. “We are proactively working with highly recognized retail chains that want to add VLN to their cigarette sets, many of which are already customers of Core-Mark and/or Eby-Brown, thus streamlining the rollout process.”

    The new partnerships provide nationwide distribution capabilities for VLN via 31 Core-Mark and Eby-Brown warehouses. Additionally, 22nd Century will attend 11 regional trade shows sponsored by the distributors in 2023, providing 22nd Century with the opportunity to introduce VLN to thousands of Core-Mark’s and Eby-Brown’s independent retail and chain store operators.

    “Approximately 70 percent of the estimated 39 million adult U.S. smokers want to stop smoking, though only a tiny fraction are able to quit each year,” explained James A. Mish, CEO of 22nd Century Group. “22nd Century’s proprietary reduced-nicotine tobacco technology has enabled us to develop a truly revolutionary VLN product designed to help smokers smoke less. The c-store channel is the largest point of purchase for cigarette products, and we look forward to partnering with Core-Mark, Eby-Brown and other distributor partners to continue placing our reduced-nicotine content cigarettes in a growing number of stores.”

  • 22nd Welcomes New Menthol Timeline

    22nd Welcomes New Menthol Timeline

    Image: nanzeeba

    22nd Century Group is poised to greatly benefit from the recent advancement of the U.S. Food and Drug Administration’s proposed ban on menthol as a flavoring agent in combustible cigarettes to final rule status, the company wrote in statement published on its website today.

    “The most recent updates to the Biden administration’s Unified Agenda on Regulatory and Deregulatory Actions include major advancements in the FDA’s proposed tobacco harm reduction policies in 2023,” said John Miller, president of tobacco products for 22nd Century Group. “Advancement of FDA’s proposed menthol ban could position VLN Menthol King as the only combustible menthol tobacco cigarette on the market, providing a critical off-ramp to the estimated more than 15 million menthol smokers in the U.S.”

    Menthol cigarettes account for an estimated $26 billion in retail sales. Menthol is also known to enhance nicotine’s addictive effects, making it more difficult to quit, and a disproportionate amount of menthol smokers are members of minority groups, particularly African Americans, 22nd Century wrote on its website.

    “FDA’s proposed menthol policy specifically contemplates exempting certain products from the ban, such as our MRTP authorized VLN cigarettes, providing a critical off-ramp opportunity for adult menthol smokers,” stated John Pritchard, vice president of regulatory science for 22nd Century Group. “Without an off-ramp product, both research and real-world experience show the vast majority of menthol smokers would simply transition to traditional combusted cigarettes. 22nd Century’s MRTP authorization documents how VLN products can help people to smoke less, leading to a true reduction in smoking in line with FDA’s important public health goals.”

    Advancement of FDA’s proposed menthol ban could position VLN Menthol King as the only combustible menthol tobacco cigarette on the market.

    John Miller, president of tobacco products, 22nd Century Group

    The Unified Agenda also indicates that the FDA intends to advance its transformative reduced nicotine content standards later in 2023, which seeks to limit the nicotine levels in all cigarettes to a level considered “minimally or non-addictive.” Both of these standards are considered game changers for public health and could be extremely favorable for 22nd Century Group due to VLN’s 95 percent reduced nicotine content.

    22nd Century has been expanding sales of VLN cigarettes across five states with anchor partners including Circle K and Smoker Friendly. Following the company’s stated growth strategy to expand to 12-15 states during 2023, 22nd Century is actively engaged with multiple industry leading distribution partners and retail store chains wanting to introduce VLN products to adult smokers in both existing and new markets.

    “The proactive and forward-thinking policies of the FDA have the power to reduce the harms of smoking and save millions of lives,” said Miller. “22nd Century Group continues to fully support these policies, and VLN® reduced nicotine content products demonstrate that these programs are 100 percent achievable.”

    22nd Century Group’s VLN brand cigarettes are the only combustible cigarettes that the FDA has authorized as modified risk tobacco products. The company’s VLN King and VLN Menthol King brands contain 95 percent less nicotine than traditional addictive cigarettes.

    A final decision on the menthol ban is expected in August 2023.

  • Miller to Lead 22nd’s Tobacco Business

    Miller to Lead 22nd’s Tobacco Business

    Photo: 22nd Century Group

    22nd Century Group promoted John Miller to president of its tobacco business unit on Nov. 11, reports the Winston-Salem Journal, citing a Nov. 17 regulatory filing. Miller was hired by the manufacturer in May.

    Miller has more than 35 years of experience in the tobacco and consumer packaged goods industries, including most recently as president and chief executive of Swisher International, which makes cigars and smokeless tobacco products.

    He also worked for more than 20 years in various management positions at U.S. Smokeless Tobacco Co. through its acquisition by Altria Group Inc. in 2009.

  • GVB Opens Distribution Facility in Netherlands

    GVB Opens Distribution Facility in Netherlands

    Photo: vchalup

    GVB Biopharma has opened a distribution facility in the Netherlands to support its growing business in Europe, the Middle East and Africa. The new facility will increase customer access to GVB’s hemp/cannabis products, speed up transaction flow and optimize cross-border tax and customs treatment, according to GVB parent company 22nd Century Group.

    Recent increases in GVB’s U.S. manufacturing capacity are complementary to the advent of the company’s Netherlands distribution facility, the company noted. Additional capacity is in part earmarked to satisfy increasing demand in European markets where margins are higher than in the U.S.

    “We are excited to expand our business operations in Europe, allowing our customers and partners to access quality products in a more efficient manner,” said 22nd Century Group CEO James A. Mish in a statement.

    “With our new Netherlands distribution facility, we can now deliver product to our partners in half the time and better serve our growing customer base with quality distillate and isolates. In Europe, the hemp/cannabis industry is expanding rapidly and is expected to reach €3.2 billion [$3.33 billion] by 2025. Our new facility will allow us to capture more of that market share, scale our operations and expand our customer base in this region.”

  • 22nd Century Reports Third-Quarter Results

    22nd Century Reports Third-Quarter Results

    22nd Century Group reported net sales of $19.4 million for the third quarter of 2022, up 148 percent over that posted in the comparable 2021 period. The increase was due to increased contract manufacturing volumes as well as the addition of GVB Biopharma revenue for the full third quarter.

    Revenue from tobacco-related products was $11.5 million, an increase of 47.7 percent from 2021, primarily driven by volume increases in the number of cartons sold, price increases and favorable mix for filtered cigar and cigarettes (including export cigarettes).

    Revenue from hemp/cannabis-related products was $7.8 million compared to $0 in the prior year third quarter.

    During the quarter, the company expanded distribution of its VLN reduced-nicotine cigarettes, accelerating sales in Colorado and Illinois while launching the brand in the “Four Corners” states—Arizona, Utah and New Mexico.

    “The past few months have demonstrated tremendous commercial progress in 22nd Century’s reduced-nicotine tobacco and hemp/cannabis businesses,” said 22nd Century CEO James A. Mish in a statement. “Our VLN product launch has expanded from the exceptional pilot in Chicago to now five states. We plan to expand that base to as many as 18 states over the next 12 months.

    “Doing so would give us access to more than half the $80 billion U.S. tobacco market and position us in most, if not all, of the states that have enacted MRTP (modified-risk tobacco product) excise tax provisions favorable to our unique product authorization. Even just a 1 percent share, which we view as eminently achievable based on our pilot results, would be transformative to our revenue line.

    “The FDA is also continuing to advance its interests in transformative menthol and reduced-nicotine policies, and 22nd Century is positioned at the forefront of this opportunity with the only MRTP authorized 95 percent reduced-nicotine combustible cigarette and years of clinical research documenting the benefits of our products.”

  • 22nd Century Welcomes Reduced Nicotine Study

    22nd Century Welcomes Reduced Nicotine Study

    Photo: 22nd Century Group

    22nd Century Group welcomed the results of a recent study that found switching to reduced-nicotine content (RNC) cigarettes “reduces toxicant exposure and increases smoking cessation without worsening mental health among smokers with mood or anxiety disorders.”

    According to 22nd Century, the study conclusively dispelled a common misconception that RNC’s may exacerbate general health and mental health problems. The study also concluded that a national nicotine reduction policy for cigarettes will likely result in reduced nicotine absorption and likely result in greater smoking cessation from smokers with mood and anxiety disorders.

    The study examined adult smokers with a current or lifetime anxiety or unipolar mood disorder. The participants were randomly assigned to smoke conventional cigarettes or 22nd Century’s RNC research cigarettes. Adult smokers who were assigned to smoke 22nd Century’s RNC cigarettes had significantly lower cigarette consumption, lower cigarette dependence, lower plasma cotinine (metabolite of nicotine) and lower exhaled carbon monoxide than smokers assigned to the conventional group.

    At the end of the study, despite having selected only participants not intending to stop smoking, those randomized to the group using 22nd Century’s RNC cigarettes were more likely to have quit smoking.

    “Study after study, reduced-nicotine cigarettes are shown to be beneficial to adult smokers. The combination of reduced-nicotine cigarettes and a proposed nicotine standard have the potential to forever change the trajectory of public health by helping adult smokers smoke less,” said James A. Mish, chief executive officer of 22nd Century Group, in a statement.

    “Based on last week’s comments from FDA’s [U.S. Food and Drug Administration’s] Center for Tobacco Products Director, Dr. Brian King, we are confident the FDA will use its existing authority to advance both a reduced nicotine policy and a menthol ban. These policies and 22nd Century’s reduced-nicotine cigarettes are expected to save millions of lives and increase the chances that current smokers quit. Our VLN reduced-nicotine content cigarettes are backed by clear science and evidence, which support FDA’s proposed product standards, and are the only FDA-authorized combustible product able to meet the stringent reduced nicotine levels determined by the FDA to be ‘minimally or nonaddictive.’”

  • VLN Debuts in “Four Corners” States

    VLN Debuts in “Four Corners” States

    Photo: 22nd Century Group

    22nd Century Group is launching its VLN reduced-nicotine content in the “Four Corners” states—Arizona, Utah and New Mexico. The company will leverage both existing partners and new distribution networks. VLN was previously introduced in Colorado and Illinois.

    “With the addition of three more states, we are moving ahead with our plans to rapidly make our innovative products available to a much larger portion of the adult smoker population in the United States,” said John J. Miller, president of 22nd Century’s tobacco business, in a statement.

    “This is a massive market in need of new solutions to help adult smokers smoke less. Every 1 percent share of the U.S. market equates to approximately $800 million in sales at the register, which is about $500 million in revenue to a premium cigarette manufacturer.

    “These four states will demonstrate our scalable and repeatable state launch blueprint for VLN, which we are now leveraging to rapidly put our product in front of an ever-growing population of adult smokers looking for a way to smoke less.

    “Additionally, we have the benefit of favorable MRTP excise tax structures for tobacco products sold in Utah and New Mexico, similar to the beneficial programs in Colorado, that can assist us in getting the word out to adults who can benefit from our products.

    22nd Century Group’s proprietary VLN cigarettes smoke, smell and taste like a cigarette but contain approximately 95 percent less nicotine than conventional cigarettes, a level shown to be nonaddictive, according to 22nd Century Group.

  • 22nd Century Partners With Creager Mercantile

    22nd Century Partners With Creager Mercantile

    Photo: Argus

    22nd Century Group has added Creager Mercantile as a distribution partner to expand availability and support for its VLN reduced nicotine content cigarette products in the U.S. state of Colorado.

    Operating since 1958, Creager is a well-known wholesale supplier for a wide array of cigarette retailers, including hospital gift shops, gas stations and tobacco shops across the state. The company supports more than 1,000 stores across numerous specialty and retail store brands. Combined with 22nd Century’s previously announced partnership with Eagle Rock Distributing Company, the company now has access to thousands of potential retail sites across the state that could be serviced by its VLN distribution partners.

    “We are excited to work with 22nd Century Group to make VLN available to adult smokers in Colorado who are looking for a new way to cut their ties to nicotine,” said Chip Creager, president of Creager Mercantile, in a statement. “Creager supports a diverse array of specialty stores, often advising retailers on the best new products to add to their shelves. We believe that VLN’s uniqueness as the first and only cigarette designed specifically to help smokers smoke less makes it an important and attractive product for adult smokers, and we will be actively working with our retail partners to launch VLN to their stores in the coming months.”

    Creager opens up an entire additional channel of specialty retail and tobacco suppliers across the state of Colorado.

    John J. Miller, president of 22nd Century’s tobacco business

    “Creager opens up an entire additional channel of specialty retail and tobacco suppliers across the state of Colorado, and its direct role in product recommendations and store support make it an ideal partner for 22nd Century’s VLN rollout,” said John J. Miller, president of 22nd Century’s tobacco business. “We look forward to working directly with Creager to place VLN on as many shelves as possible, making our important new product broadly available in as many locations as possible where traditional combustible cigarettes are sold.”

  • 22nd Century Partners With Eagle Rock

    22nd Century Partners With Eagle Rock

    Photo: 22nd Century

    22nd Century Group will start placing its VLN reduced-nicotine cigarettes in thousands of stores across Colorado with Eagle Rock Distributing Co. With more than 90 years of history, Eagle Rock Distributing Co. is a leading beverage distributor of premium alcoholic beverages servicing license retailers across Georgia and Colorado.

    “We’re thrilled to partner with Eagle Rock as we open VLN sales across Colorado. In addition to our existing retail partnerships from our Chicago pilot, we now have access to nearly 7,000 prospective new locations through Eagle Rock’s network, to include both on-premise and off-premise locations,” said John J. Miller, president of 22nd Century’s tobacco business, in a statement.

    “We are excited to partner with 22nd Century Group to market VLN across the state of Colorado,” said Michael Economos, president of Eagle Rock Distributing Co. “We want Colorado to be the first state to have a combustible cigarette brand that meets the U.S. Food and Drug Administration[‘s]

    and Biden administration’s proposed nicotine cap broadly available to adult smokers across the state to truly help them smoke less. We have had similar ‘nonalcoholic’ adult beverage offerings for decades, and we are way overdue for adult cigarette smokers to have an analogous option.”

    22nd Century also partners with Circle K, one of the largest convenience chains in North America, and Smoker Friendly, a leading pioneer in the cigarette and tobacco store category with more than 800 independently owned and operated retail stores.

  • Lucie Salhany Joins 22nd Century Board

    Lucie Salhany Joins 22nd Century Board

    Lucie S. Salhany

    22nd Century Group has appointed Lucie S. Salhany to its board of directors.

    Salhany is a highly accomplished media executive with extensive experience in assessing and understanding the consumer landscape, positioning unique products for successful launch utilizing digital media, corporate strategy and entrepreneurial ventures.

    She is widely recognized for her appointment as the first woman chair of a major broadcast network, which was earned through her unparalleled track record of successful growth and expansion in the industry. Salhany will serve as a member of 22nd Century’s corporate governance and nominating and finance committees.

    “I am delighted that Lucie has chosen to join 22nd Century’s board of directors. Her well-established track record of success in business along with her strong background in and knowledge of the media industry will be extremely valuable for the company as we execute on our mission to reduce the harm caused by smoking, launch VLN and monetize our hemp/cannabis operations,” said 22nd Century Board Chair Nora B. Sullivan in a statement.

    “We are confident her contributions will help raise 22nd Century’s profile in the consumer marketplace and mainstream media. Lucie’s appointment also reflects our continued commitment to the diversity of our board, and I very much look forward to her perspective and contributions in the board room.”

    Salhany is currently president and CEO of her own consulting company, JHMedia. She was also one of the founding partners of Echo Bridge Entertainment and CEO and president of LifeFX Networks.