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Tag: 22nd Century Group

  • 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.

  • Management Changes at 22nd Century

    Management Changes at 22nd Century

    Photo: Naka

    22nd Century Group is changing its management team as the company accelerates growth in its reduced nicotine content tobacco business. President and Chief Operating Officer Michael Zercher will depart the company effective Sept. 30, 2022. John Miller, who leads 22nd Century’s tobacco business team, will assume the tobacco-related duties of the chief operating officer’s role while CEO James A. Mish will assume the title of corporate president.

    “With exceptionally successful VLN pilot results in hand, 22nd Century is expanding sales and planning rollouts in strategic regions across the United States,” said Mish in a statement. “In order to coordinate all of the critical elements of this expansion plus additional planned market launches, John Miller, who already leads our tobacco product, marketing and partnership efforts, will assume full operational responsibility for the tobacco product lines, bringing to bear his more than 30 years of industry experience to direct a fully integrated national VLN sales strategy.

    “On behalf of the board of directors and the entire company, I thank Mike for his work at 22nd Century Group, including his important role in helping bring VLN through the regulatory process to secure the first and only FDA modified-risk tobacco product marketing order ever granted to a combustible cigarette.

    “Mike has also been instrumental in developing our initial VLN industry partnerships and successful Chicagoland pilot program,” said Mish. “As a result, 22nd Century represents a completely new type of tobacco business focused on disrupting the industry and, most importantly, helping adult smokers to smoke less. We thank Mike for the incredible success he has helped the company achieve and wish him well in his future endeavors.”

  • 22nd Century Launches VLN in Colorado

    22nd Century Launches VLN in Colorado

    Photo: 22nd Century Group

    Encouraged by the strong results of its pilot program in Chicago, 22nd Century Group will launch its VLN low-nicotine cigarette in Colorado and expand sales of the brand in Illinois.

    In  addition to its existing partnerships with cigarette retailers Circle K and Smoker Friendly, 22nd Century will announce two distribution partners as part of its launch in Colorado.

    To date, the company has already completed state attorney general registrations for VLN in 44 U.S. states and the District of Columbia.

    “We are excited to expand our VLN launch to Colorado with both current and new partners. The overwhelmingly positive feedback from consumers during our Chicago pilot has demonstrated impressive demand and rapid market entry for VLN as the first and only tobacco cigarette that actually helps adult smokers smoke less,” said John J. Miller, president of 22nd Century’s tobacco business, in a statement

    “Extrapolating our strong pilot market results to a national scale with additional points of sale and geographic coverage gives us confidence we can disrupt and rapidly take significant share in the more than $80 billion U.S. market and $800 billion global tobacco market to create substantial value for our stakeholders.”

    In December 2021, the U.S. Food and Drug Administration authorized 22nd Century to market its VLN King and VLN Menthol King cigarettes as modified-risk tobacco products, making them the first combustible products to receive such a designation.  

  • VLN Recognized as ‘Best New Product’

    VLN Recognized as ‘Best New Product’

    Photo: 22nd Century Group

    22nd Century Group’s VLN King and VLN Menthol King reduced-nicotine content cigarettes have been awarded Best New Product in the cigarette category by Convenience Store News.

    Now in its 26th year, the Best New Products Awards recognize the most innovative, high-quality products introduced into the convenience channel to meet consumers’ evolving needs and fit a convenience store’s value proposition. This is the first Convenience Store News award in the cigarette category.

    “We are honored and excited that VLN was recognized with the Best New Product award in the cigarette category by Convenience Store News,” said John J. Miller, president of 22nd Century’s Tobacco Business, in a statement.

    “VLN is truly a game-changer, and this award confirms the market’s interest in VLN and their interest in new tools to help adult smokers smoke less. Our VLN pilot has exceeded expectations in Chicago, and we are now expanding our VLN launch statewide in Colorado as we work to broaden availability of this important new product.”

    The Best New Products Awards are judged by a panel of consumers on value, convenience, appearance and packaging along with attributes such as taste and ingredients. Judging was supervised and tallied by Past Times Marketing, a New York-based consumer research and product testing firm.

  • 22nd Century to Ring Nasdaq Closing Bell

    22nd Century to Ring Nasdaq Closing Bell

    Photo: Mat Szymański

    Representatives of 22nd Century Group will ring the Nasdaq Closing Bell on Aug. 26, 2022, celebrating the launch of VLN reduced-nicotine cigarettes.

    In December 2021, the U.S. Food and Drug Administration gave 22nd Century Group permission to market VLN cigarettes as modified-risk tobacco products, making them the first combusted cigarettes to be authorized as such and the second tobacco products overall to receive “exposure modification” orders.

    Since that time, the company has launched VLN cigarettes in various pilot markets, including in the Chicago area.

    According to 22nd Century Group, the Chicago pilot has exceeded expectations, leading the company to accelerate and expand its launch plans to the state of Colorado.

    “Our VLN pilot program in Chicago has confirmed the market’s interest in VLN as adult smokers look for new tools to help them smoke less, an important step to improving overall public health,” said John J. Miller, president of 22nd Century’s tobacco business, in a statement.

    “Based on the better-than-expected results of our pilot, we are accelerating our launch plans and commencing sales in the state of Colorado through multiple partners committed to helping us offer adult smokers a real choice, a product that can help them smoke less.”

  • 22nd Century Reports Second-Quarter Results

    22nd Century Reports Second-Quarter Results

    Photo: 22nd Century Group

    22nd Century Group reported net revenue of $14.48 million for the three months ended June 30, 2022, up 73 percent over the comparable 2021 quarter. Gross profit was $892,000 for the quarter compared with $449,000 for the second quarter of 2021.

    The increase in net revenue was due to increased contract manufacturing volumes as well as the addition of GVB Biopharma revenue for approximately half of the second quarter. 22nd Century Group acquired GVB Biopharma on May 13.

    Revenue from tobacco-related products was $10 million, an increase of 19 percent from 2021. Revenue from hemp/cannabis-related products was $4.5 million compared to zero in the prior year, reflecting a partial quarter of GVB revenues.

    22nd Century Group said it will step up the rollout of its VLN King and VLN Menthol King reduced-nicotine content cigarettes. After receiving permission from the Food and Drug Administration in December to market its VLN brands as modified-risk tobacco products (MRTPs), 22nd Century started a pilot program to sell the product at select Chicagoland Circle K stores.

    “Our VLN pilot in Chicago is exceeding expectations, driving us to accelerate and expand our launch plans,” said 22nd Century Group CEO James A. Mish in a statement. “The pilot and consumer studies have made clear that our approach focusing on awareness, education and trial is working with adult smokers. We are now testing specific offers designed to increase trial and repeat purchase among existing smokers looking to smoke less/reduce their nicotine consumption while also expanding our presence in Chicago and the state of Illinois.

    “We are also expanding our VLN launch to the state of Colorado ahead of plan. Colorado offers a reduced taxation rate for MRTP-authorized products, providing a favorable cost structure for our VLN products in that state as compared to traditional premium cigarettes.

    “Additionally, and more importantly, we are working closely with a major consumer packaged goods distributor and a longstanding specialty distributor covering convenience, grocery and drug stores across the state, giving us full access to a broad range of more than 3,000 targeted statewide potential points of sale.”