Tag: Dryft Sciences

  • Dryft Files Antitrust Suit Against Swedish Match

    Dryft Files Antitrust Suit Against Swedish Match

    Photo: Dryft Sciences

    Dryft Sciences has filed an antitrust lawsuit seeking $1.2 billion in damages from Swedish Match (SM).

    Brought on Aug. 2 in the California Central District Court, the suit accuses SM of filing baseless lawsuits against Dryft in order to increase legal costs, deter third-party investment and ultimately force Dryft out of business in order to establish a monopoly on nicotine pouch (NP) products.

    “SM brought these legal actions against Dryft because it knew it could not compete fairly with Dryft based on the qualities and price of its NP product, Zyn,” Dryft Sciences wrote in its complaint.

    According to Dryft, SM publicly expressed its intent to unlawfully eliminate the product Dryft from the market. In a convenience store industry report dated Sept. 16, 2020, SM’s director of category management stated that Dryft would be the first brand casualty, Dryft Sciences alleges in its complaint.

    Originally developed by Thomas Eriksson in Sweden, Dryft was launched in the United States by Kretek International in 2016. Kretek International later spun off Dryft Sciences and the Dryft product into a separate entity.

    The case is 2:22-cv-05355, Dryft Sciences LLC v. Swedish Match North America LLC.

  • BAT Buys Dryft Pouch Business

    BAT Buys Dryft Pouch Business

    Photo: Dryft Sciences

    British American Tobacco (BAT) has bought the nicotine pouch product assets of Dryft Sciences, a U.S.-based modern oral nicotine product company.

    The acquisition expands BAT’s modern oral portfolio in the U.S. from four to 28 product variants. It follows the acceptance of Dryft’s recent pre-market tobacco product application submission for filing by the U.S. Food and Drug Administration. The enhanced portfolio will include a wider range of nicotine strengths and flavors.

    BAT will rebrand Dryft’s U.S. portfolio under its global modern oral brand, Velo, and expects to accelerate growth through superior distribution, marketing and channel capabilities.

    “Today’s announcement underscores our societal commitment to accelerate our transformation and build ‘a better tomorrow’,” said BAT CEO Jack Bowles in a statement. “Our multi-category strategy is key to our transformation. The addition of Dryft to our U.S. Velo brand is a major step forward, further enhancing our successful vaping and oral portfolio.”

    “We’re proud of the tremendous momentum we’ve built with Dryft and thrilled that our strong product portfolio will now serve to enhance the Velo brand,” said Jason Carignan, president of Dryft Sciences. “We remain confident that modern oral innovations like Dryft and Velo will continue to find an adult consumer base seeking alternatives to traditional products.”

    According to BAT, the acquisition fits into its mission to reduce the health impact of its business. The company aims to accelerate the growth of its new category revenues at a faster rate than its total revenue, reaching £5 billion ($6.5 billion) in 2025. BAT wants to have 50 million consumers of non-combustibles worldwide by 2030.