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Tag: Modern Oral

  • U.S. Momentum Keeps BAT FY25 On Track

    U.S. Momentum Keeps BAT FY25 On Track

    BAT released its 2025 full-year pre-close trading update today (December 9), saying it expects around 2% revenue and adjusted operating profit growth in FY25, with New Category revenues accelerating to double-digit growth in H2 to deliver mid-single-digit growth for the full year. Performance is being led by the U.S., where stronger combustibles results and Velo Plus momentum are driving revenue and profit, with Velo Plus on track to be profitable for the full year. Early federal and state enforcement efforts against illicit vapor products are also supporting recent improvements in Vuse volumes and revenues.

    Growth in New Categories is being driven primarily by Velo, now the “fastest-growing Modern Oral brand globally,” with strong share gains across priority markets and accelerating U.S. performance. While glo revenue remains broadly flat due to competitive pressure and platform transitions, the company is launching glo Hilo in premium heated tobacco markets. Vuse is showing improving H2 trends, supported by enforcement against illicit products, and early traction for the premium Vuse Ultra platform in Canada, Germany, and France, despite ongoing headwinds in the U.S. and Canada.

    Looking ahead, the company remains confident in its mid-term growth targets from 2026, guiding for 3–5% revenue growth, 4–6% profit growth, and 5–8% EPS growth, with 2026 likely at the lower end of the range. Strong cash generation continues, with operating cash flow conversion expected to exceed 95% and leverage targeted to fall to 2.0–2.5x by end-2026. Capital returns remain a priority, with progressive dividends and an expanded £1.3bn share buyback program for FY26.

  • Turning Point Reports Record Q3 2025

    Turning Point Reports Record Q3 2025

    Turning Point Brands, Inc. reported Q3 2025 net sales up 31.2% year-over-year to $119 million, driven by strong performance in its Modern Oral segment, which surged 627.6% to $36.7 million, now representing 31% of total sales. Adjusted EBITDA rose 17.2% to $31.3 million, and net income jumped 70.3% to $21.1 million. The company raised its 2025 Adjusted EBITDA outlook to $115–120 million (from $110–114 million) and increased Modern Oral sales guidance to $125–130 million (from $100–110 million).

    CEO Graham Purdy said the results “exceeded expectations,” highlighting the strong growth of Modern Oral products and progress toward qualifying U.S. white pouch production lines by early 2026. The Stoker’s segment grew 80.8% to $74.8 million, while the Zig-Zag segment declined 10.5% to $44.2 million. TPB ended the quarter with $201 million in cash and $267.8 million in total liquidity.

  • Turning Point Reports Strong Q3 2025

    Turning Point Reports Strong Q3 2025

    Turning Point Brands, Inc. posted third-quarter 2025 net sales of $119.0 million, up 31.2% year-over-year, driven by Stoker’s segment growth of 80.8%. Gross profit rose 39.7% to $70.4 million, while net income increased 70.3% to $21.1 million, the company said today (November 5).

    The company highlighted Modern Oral sales of $36.7 million, up 628% from last year, with U.S. white pouch production lines expected to qualify in H1 2026. The Zig-Zag segment saw a 10.5% decline, mainly due to the Clipper business wind-down.

    TPB ended Q3 with $201.2 million in cash, total liquidity of $267.8 million, and net debt of $98.8 million. The company raised $97.5 million through its ATM offering to accelerate Modern Oral growth.

    For full-year 2025, TPB raised Adjusted EBITDA guidance to $115–120 million and Modern Oral sales forecast to $125–130 million.

  • Modern Oral Sales Surge 651% in Turning Point’s Strong Q2 Report

    Modern Oral Sales Surge 651% in Turning Point’s Strong Q2 Report

    Turning Point Brands, Inc. reported robust second-quarter results, with Modern Oral net sales skyrocketing 651% Y-Y to $30.1 million, now making up 26% of total revenue. Total net sales rose 25.1% to $116.6 million, while net income increased 11.3% to $14.5 million. Adjusted EBITDA grew 14.8% to $30.5 million, and adjusted net income hit $18 million.

    The Stoker’s segment, boosted by Modern Oral, posted a 62.9% sales increase, while Zig-Zag declined 6.9% due to product mix shifts. Despite that, the company increased its full-year 2025 Modern Oral sales forecast to $100–110 million, up from $80–95 million.

    CEO Graham Purdy credited the strong results to aggressive growth in Modern Oral and resilience in legacy brands. “Our consolidated second quarter results were better than expected,” he said.

    TPB ended the quarter with $190.1 million in net debt and $176.4 million in liquidity. The company also raised its 2025 Adjusted EBITDA guidance to $110–114 million.

    A replay of the earnings call can be found at turningpointbrands.com.

    The company also declared a regular quarterly dividend of $0.075 per common share. The dividend is payable October 10, to shareholders of record on the close of business on September 19.

  • Stingfree Completes SEK5 Million Share Issue

    Stingfree Completes SEK5 Million Share Issue

    Photo: Stingfree

    Stingfree, a snus startup based in Sweden, has completed a new share issue of SEK5 million ($460,000) in November, resulting in a company valuation of SEK40.6 million.

    Demonstrating his confidence in the company’s future, billionaire entrepreneur Erik Selin increased his ownership stake from 15.8 percent to 21.9 percent.

    Stingfree offers a patented integrated gum protection product, effectively reducing burning, corrosion and irritation of the gums and thus enabling nicotine pouch use without discomfort.

    A spring 2024 pilot study in Sweden revealed significant declines in snus- and pouch-related oral health problems, such as oral lesions and inflamed gums after participants switched from their regular brands to a Stingfree nicotine pouch product for five weeks.

    Twenty out of the 23 dentists participating in the study now recommend Stingfree nicotine pouches to pouch using patients who cannot or do not wish to quit.

    “Injuries to the oral mucosa and gums are a common consequence of pouch use, regardless of whether the snus contains tobacco or is tobacco-free (nicotine pouches). Independent dental studies in Sweden and Norway published in 2022-2023 indicate that the prevalence of snus lesions affects as many as 70-90 percent of all users, which corresponds to over 1.2 million users in just Sweden and Norway.

    Our goal is for Stingfree nicotine pouches to become a new alternative standard for this category of oral nicotine products, as natural as light beverages are for soft drinks and GoreTex is for clothing and shoes.

    Daniel Wiberg, CEO, Stingfree

    “While other manufacturers compete on flavor and strength, we offer something truly unique—a solution that can actually improve the user’s oral health,” said CEO Daniel Wiberg.

    “Our goal is for Stingfree nicotine pouches to become a new alternative standard for this category of oral nicotine products, as natural as light beverages are for soft drinks and GoreTex is for clothing and shoes,” he added.

    “Our surveys with over 1,000 participating Swedish snus and nicotine pouch users also show that 67 percent of women and 53 percent of men dislike the burning sensation and the irritation on the gums” said Stingfree founder Bengt Wiberg.

    Tobacco Reporter profiled Stingfree in its July 2017 issue (see “Patching the Pouch“).

  • Carlson’s Alp Could Upend Pouch Market: Survey

    Carlson’s Alp Could Upend Pouch Market: Survey

    More than 86 percent of current U.S. nicotine pouch users say they are likely to switch to the recently launched Alp brand, according to a survey carried out by online retailer Nicokick. Such a shift would upend the nicotine pouch industry, which is currently valued at approximately $988.4 million and dominated by Philip Morris International’s Zyn brand.

    Alp was launched in November by Tucker Carlson and Turning Point Brands. The conservative commentator touts the product as “the first nicotine pouch brand made by and for adults who unapologetically love nicotine.”

    According to an earlier article in The Wall Street Journal, Carlson decided to enter the tobacco business because of the way Zyn manufacturer Philip Morris International responded to an off-color remark he made in 2023 about America’s bestselling nicotine pouch.

    It’s clear the introduction of Tucker Carlson’s brand Alp should have a significant impact on the nicotine market, not only with current pouch users, but also with consumers of other forms of smoking and tobacco products.

    Marina Murphy, senior director of scientific affairs, Nicokick

    Also in Nickokick’s survey, 41.4 percent of cigarette users and 53.6 percent of cigar users said they would be likely to switch to Alp nicotine pouches. Nearly 55 percent of vapers also said they would be likely to switch.

     “It’s clear the introduction of Tucker Carlson’s brand Alp should have a significant impact on the nicotine market, not only with current pouch users, but also with consumers of other forms of smoking and tobacco products,” said Marina Murphy, senior director of scientific affairs at Nicokick.

    “A shift away from cigarettes, and towards nicotine alternatives like pouches, could have impacts not only on the industry, but on the lives and health of millions of American consumers.”

  • ‘Pouch Nicotine Limits will Drive Users to Smoking’

    ‘Pouch Nicotine Limits will Drive Users to Smoking’

    The Tholos Foundation released exclusive new research from international polling firm IPSOS on how Danish consumers would react if proposals to limit nicotine in nicotine pouches were implemented. In September 2024 the Danish Government published a “Draft Order on nicotine content limits in tobacco substitutes,”’ which proposed to introduce a limit of 9 mg per pouch.

    Findings of the poll include that three quarters of consumers use nicotine pouches for health-related reasons, primarily to reduce or quit smoking. Since the introduction of nicotine pouches to Denmark in 2018, smoking rates have fallen from 19 percent to 14 percent in 2023, and the research shows close to 20 percent of current pouch users would return to smoking if this ban was implemented.

    The poll also found that enacting such a proposal would lead to an explosion of black market sales, with fifty percent of consumers expecting to purchase illegally. The poll also found the vast majority of consumers do not support the proposed nicotine limit.

    “The evidence is clear: nicotine pouches help consumers quit smoking and reduce harm. The proposed nicotine limit is a disaster for public health which will increase smoking rates, and create a huge black market,” said Tim Andrews, Tholos’ director of consumer issues.

    “Eighty percent of consumers know nicotine pouches are helpful in reducing smoking rates, and believe governments should support less harmful alternatives to smoking – a powerful voting block. This is a clear sign to the government they should follow international best practices through introducing smart regulations based on research and evidence, which restrict sales to minors and prevent underaged experimentation, while still allowing adults the ability to quit smoking.”

    In 2022 the German Federal Institute for Risk Assessment conducted the world’s most comprehensive research into nicotine pouches, confirming their benefits in reducing health risks compared to smoking, and recommended regulation based around an optimal level of nicotine of 16.6mg per pouch.

  • The Zyn Marketing Fallacy

    The Zyn Marketing Fallacy

    Photo: Swedish Match North America

    Blaming the manufacturers for irresponsible marketing is a red herring.

    By Peter Clark

    The social media presence of nicotine pouches has recently come under fire from public health experts. For example, Jai Surana believes that “aggressive marketing” has contributed to the spike in popularity in this product category.

    Some perceive that nicotine pouches and e-cigarette markers present their products as a safe alternative to tobacco. With this perception of tobacco substitutes, coupled with the appealing variety of flavors, many are worried that kids will start using these products. Zyn’s robust meme culture and numerous influencers only fuel misconceptions about its marketing.

    Contrary to the immersive online subculture of Zyn, nicotine pouches are not an exploding health epidemic among teens. The headlines of the droves of nicotine-addicted youth are exaggerations.

    Blaming the manufacturers for irresponsible marketing is nothing but a red herring. Because most nicotine users are adults, many content producers are unaffiliated with producers, and the marketing hasn’t effectively targeted teens.

    Despite the public health crusade to shield children from nicotine pouch advertisements on social media, only a minority of kids are using these products. The largest demographic for nicotine pouches is the “35–45” age group, making up 60 percent of the market. Per the Centers for Disease Control and Prevention, most pouch users are either current or former smokers. Most of the evidence suggests that most Zyn users are adults trying to quit smoking or are getting their nicotine fix when smoking isn’t an option.

    How many kids use nicotine pouches? The number of teens using these products is minuscule. In 2024, only 1.8 percent of “middle school and high school students reported currently using nicotine pouches.” This pales in comparison to the significantly higher numbers of teens smoking in the 1990s. A jaw-dropping 16.8 percent of high school students were “frequent smokers” in 1999. This was still only a minority of teens but significantly higher than the number of kids currently using nicotine pouches.

    Yes, nicotine pouches have social media sites, but what about the third-party content producers? There is a lot of finger-wagging at nicotine pouch companies for Instagram posts lacking warning labels, but will a Zyn fan account adhere to market guidelines? The problem is that internet culture tends to take on a life of its own. The marketing edicts of the Food and Drug Administration are not even a forethought to most Zyn enthusiasts making humorous memes.

    There is no way to limit or regulate third-party content. The best companies can do is comply with the current laws and acknowledge that nicotine is addictive on official social media content. Attempting to shut down all third-party content is a game of whack-a-mole. For example, Juul failed at many attempts to remove underage fan sites from social media.

    Even the high-profile Zyn influencers, from Joe Rogan to Tucker Carlson, are unaffiliated with the brand. Philip Morris International hasn’t paid anyone to promote its pouches. PMI spokesman Corey Henry has stated, “Zyn doesn’t have partnerships or product promotion with any social media influencers or celebrities.” Before Carlson’s culture war on Zyn and his recent venture into the market, PMI tried to distance itself from his more outlandish claims about the product.

    As mentioned previously, youth nicotine pouch use is low. However, has the social media market influenced teen use? Less than half of teens and young adults surveyed in a Georgetown study were even aware of the existence of this product. Less than a quarter of nontobacco-using participants were familiar with nicotine pouches. If Zyn is trying to market its pouches to young people, their plan has failed. Only young people predisposed to using nicotine are familiar with nicotine pouches.

    At first glance, it is easy to attack nicotine pouch brands like Zyn for irresponsible marketing, but it is not the crisis that experts and the press are making it out to be.

    Only a small number of teens are using nicotine pouches, most of the egregiously irresponsible “marketing” is coming from third-party creators, and there is little evidence that the official product marketing is pushing kids toward nicotine pouches. If we want to protect kids from nicotine addiction, we should attack the social issues driving them to use nicotine, not flashy marketing.

    Peter Clark is a fellow with the World Vapers’ Alliance. You can follow him on X at @blog_logic.
  • BAT to Launch Synthetic Nicotine Pouch in the U.S.

    BAT to Launch Synthetic Nicotine Pouch in the U.S.

    Photo: Andrii

    BAT will launch a new version of its Velo pouches using synthetic nicotine in the United States next year, reports Reuters.

    Made in a laboratory rather than derived from tobacco leaves, synthetic nicotine has gained popularity among manufacturers recently as a means to avoid the Food and Drug Administration’s lengthy and cumbersome tobacco product authorization process.

    While the FDA initially had authority only over naturally occurring nicotine, President Joe Biden in March 2022 signed into law a bill that extended the agency remit to synthetic nicotine. BAT’s launch would mark the first time a major tobacco company introduces a synthetic nicotine product in the U.S., according to Reuters. To date, synthetic nicotine has been used primarily by smaller manufacturers of vapes or pouches.

    David Waterfield, president of BAT’s Reynolds American subsidiary, said that the product’s previous owner submitted a premarket tobacco product application before the May 2022 deadline, meaning it can stay on the market while its application is pending, Waterfield said.

    The FDA, however, told Reuters that a pending application is insufficient for a synthetic nicotine product to be sold in the U.S. Products on the market without FDA authorization, the agency added, may be subject to enforcement.

    BAT expects U.S. nicotine pouch industry revenues to grow from £1.7 billion ($2.21 billion) today to up to £7 billion by 2030.

  • Imperial Sued Over Zone Trademark

    Imperial Sued Over Zone Trademark

    Photo: Olivier Le Moal

    2ONE Labs and Performance Plus Marketing have filed both a trademark infringement lawsuit and a preliminary injunction against Imperial Brand subsidiaries Zone nicotine pouch trademark.

    The suit alleges that Imperial’s Zone products willfully infringe the 2ONE nicotine pouch brand. In addition to seeking an award for damages, 2ONE is also seeking cancellation of Imperial’s Zone mark.

    According to the plaintiffs, the 2ONE brand has been continuously marketed and sold to adult consumers through thousands of U.S. convenience chain and independent grocery and smoke shop stores for the last five years.

    The suit alleges Imperial Brands made false statements by claiming a significantly earlier use of their mark in commerce than had occurred. The suit further alleges the false statements allowed Zone to be granted a fraudulent mark.

    “We have experienced numerous instances of consumer confusion since Imperial launched its Zone brand in 2024 and we intend to vigorously fight this type of blatant infringement, no matter how big the corporate bully,” said 2ONE Labs founder and partner Vincent Schuman in a statement.

    The case is before the U.S. District Court for the Central District of California.