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Tag: Velo

  • BAT Launches Dual-Flavor VELO Pouches in Sweden

    BAT Launches Dual-Flavor VELO Pouches in Sweden

    British American Tobacco launched VELO WRKS in Sweden, a new nicotine pouch line featuring cans divided into two compartments, each containing a different flavor, on Nov. 2. The first release, called Drop 1, includes three combinations: Raspberry Lime/Strawberry Basil; Tropical Orange/Lemongrass Ginger; and Cardamom Bread/Red Miso. Each can contains 20 tobacco-free pouches, with 10 in each compartment, and delivers 8 milligrams of nicotine per pouch.

    The products are priced at SEK 52.99 ($5.10) per can, with discounts for multipack purchases. BAT describes WRKS as a platform for new product ideas and flavor combinations.

  • FDA Authorizes 24 VELO Pouch Products

    FDA Authorizes 24 VELO Pouch Products

    On Oct. 30, the U.S. Food and Drug Administration issued Marketing Granted Orders to Modoral Brands Inc., a Reynolds American subsidiary, for 24 VELO nicotine pouch products, marking the first FDA marketing authorizations for British American Tobacco’s VELO brand in the United States. The orders cover eight product varieties across three packaging configurations, all containing 4 mg of nicotine. VELO Mini Pouch flavors include Crema, Lime, Orange Crema and Passion Fruit, while VELO Mini Pouch 2 comes in Crema, Lime, Orange Crema and Cinnamon. Each pouch weighs 400 mg.

    The FDA said its scientific review found that the authorized products contain lower levels of harmful and potentially harmful constituents than cigarettes and smokeless tobacco products, with several carcinogenic constituents, including those associated with oral cancer, below measurable levels. The agency evaluated whether the products could benefit adults who switch completely from other tobacco products while considering potential risks to youth and nonusers. The FDA emphasized that marketing authorization does not mean the products are safe and that adults who use tobacco must switch completely to potentially lower-risk alternatives to realize the full health benefits.

    The decision brings the total number of FDA-authorized nicotine pouch products to 67, including products marketed by Swedish Match USA’s ZYN and Altria’s Helix Innovations. The authorizations also give BAT a place alongside its two major competitors in the FDA-authorized U.S. nicotine pouch market. Only nicotine pouch products listed on the FDA’s authorized products list may legally be sold in the United States.

  • Article Examines Move Toward Higher-Strength Pouches

    Article Examines Move Toward Higher-Strength Pouches

    An article published today (Aug. 27) by Financial Times reports that major tobacco companies are accelerating their push into higher-strength nicotine pouches as competition intensifies in the U.S. market, valued at about $5.2 billion. Higher-strength products now account for 17% of U.S. pouch volumes, according to Stifel analyst Matt Smith, with Philip Morris International’s 11mg Zyn Ultra becoming the highest-strength nicotine pouch cleared by the FDA. BAT plans to launch Velo Max in 8mg and 12mg strengths, while Altria is preparing a national expansion of its 12mg On! Plus.

    Nearly 21 billion pouches were sold in the U.S. last year, according to Euromonitor, while smokeless nicotine product sales increased more than 8% in the first half of 2026 as cigarette sales declined 2.4%, according to NielsenIQ and Goldman Sachs. The companies are also expanding strength and format options as consumers develop preferences for stronger and higher-moisture products, with the FDA’s recent regulatory changes facilitating faster product introductions.

  • Reuters: Nicotine Pouches Emerge as Big Tobacco’s Key Growth Bet

    Reuters: Nicotine Pouches Emerge as Big Tobacco’s Key Growth Bet

    Reuters reports that nicotine pouches are attracting increasing investor attention as cigarette sales decline, with rapid volume growth, strong margins and relatively light regulation in many markets making brands such as PMI’s Zyn and BAT’s Velo a major focus for tobacco companies. BAT expects the global pouch market to grow from £4 billion in 2025 to £11 billion by 2030, while pouch volumes in its Asia, Middle East and Africa markets increased 27.5% to about 700 million in the first half of 2026.

    Reuters said the category also offers higher profitability than several competing alternatives. PMI reported that its U.S. oral nicotine business generated eight times the gross profit per 1,000 units of its international cigarette business in 2024, compared with 2.4 times for IQOS heated tobacco. Analysts said pouch performance is increasingly influencing tobacco-company valuations, while the products’ lack of smoke or vapor allows them to be used in locations where other nicotine products may be restricted.

    The story noted that wider adoption remains uncertain, particularly in markets without an established oral nicotine culture. Analysts cited consumer familiarity with inhaled products as a key barrier, while regulators are increasingly scrutinizing youth uptake, marketing and high nicotine strengths. France has banned pouches, while Finland, the EU and Britain are tightening rules. Despite expectations for continued growth, PMI and BAT say no single alternative will replace cigarettes, with diverse portfolios needed to accommodate different consumer preferences.

  • Velo and McLaren Offer F1 Dream Competition for Fans

    Velo and McLaren Offer F1 Dream Competition for Fans

    British American Tobacco’s Velo nicotine pouch brand and the McLaren Mastercard Formula 1 Team launched a global “Live Your Fandom” competition for the second half of the 2026 Formula 1 season, inviting adult fans to submit creative ideas for exclusive McLaren-themed experiences. The campaign, which builds on last year’s partnership, will reward selected entrants with fan-inspired experiences ranging from behind-the-scenes access to custom merchandise and meetings with McLaren executives.

    BAT said the promotion is designed to strengthen engagement with adult nicotine consumers while reinforcing Velo’s branding through its ongoing Formula 1 sponsorship with McLaren.

  • BAT Stock Surges, Despite Legacy Combustibles Shrinking

    BAT Stock Surges, Despite Legacy Combustibles Shrinking

    Shares of British American Tobacco climbed 13.99% in London trading last week to £48.64 on May 15, as investors reacted to a mix of regulatory, legal, and capital signals. Market attention followed the U.S. Food and Drug Administration authorization of flavored Glas ENDS products, seen as a reference point for how flavored e-cigarettes may fare under the PMTA pathway, even though the decision did not involve BAT’s Vuse brand. Sentiment was further supported after a U.S. court dismissed a sanctions-related criminal case tied to BAT’s prior North Korea compliance matter, confirming the company had fulfilled its deferred prosecution agreement, alongside continued focus on BAT’s planned £1.3 billion 2026 share buyback and growth prospects for its newer nicotine portfolio, including VELO.

    In contrast, BAT Bangladesh reported a 14% year-on-year drop in cigarette volumes and a 34% decline in profit for Q1 2026 amid higher taxes, inflationary pressure, and weaker consumer purchasing power, underscoring the diverging performance between BAT’s legacy combustible markets and investor expectations tied to reduced-risk product expansion.

  • Tobacco-Free Kids Launches Campaign to End F1’s Tobacco Ties

    Tobacco-Free Kids Launches Campaign to End F1’s Tobacco Ties

    Today (March 28), the Campaign for Tobacco-Free Kids launched a new advertising initiative, “End the Formula,” ahead of the May 3 Miami Grand Prix, calling on Formula 1 to eliminate all tobacco-related sponsorships. The campaign targets partnerships between major F1 teams and companies, including Philip Morris International and British American Tobacco, which promote nicotine pouch and e-cigarette brands such as Zyn, Velo, and Vuse through branding on cars, driver apparel, and digital media. The campaign ties into similar efforts that began in March, which included ads, coordinated outreach with 162 organizations across 57 countries, and more than 25,000 petition messages urging F1 and affiliated partners to end these sponsorship arrangements.

  • BAT Pulls Pouches from France, Criticizes Debateless Ban

    BAT Pulls Pouches from France, Criticizes Debateless Ban

    BAT France said it has stopped marketing nicotine pouches nationwide as of April 1, complying with a government decree issued on Sept. 5, 2025 that entered into force this week. The company confirmed it is withdrawing the products from sale in line with the regulation.

    At the same time, BAT France criticized the move as a regulatory ban adopted without parliamentary debate, arguing it runs counter to harm-reduction strategies and France’s goal of a “tobacco-free generation” by 2032. The company said the decision comes amid ongoing European discussions over revisions to the Tobacco Excise Directive and evaluation of the Tobacco Products Directive, and pledged to continue advocating for what it called a science-based, proportionate framework while focusing on vaping products for adult smokers.

  • FDA’s Pouch Fast-Track Scheme Stalling Over Youth Worries

    FDA’s Pouch Fast-Track Scheme Stalling Over Youth Worries

    A fast-track review program at the U.S. Food and Drug Administration aimed at accelerating authorizations for nicotine pouch products has stalled, as agency scientists weigh concerns about youth uptake and risks to non-users against potential harm-reduction benefits for smokers, according to sources cited by Reuters. Reuters said applications tied to pouch brands from Philip Morris International (Zyn) and British American Tobacco (Velo) remain under review despite expectations that decisions would be made by the end of 2025 under the pilot scheme. The FDA has already authorized six products under Altria Group’s on! brand, but reviewers are said to be taking a more cautious stance on other applications where evidence of net public-health benefit is viewed as less clear-cut.

    While FDA data shows pouch use among middle- and high-school students remains relatively low, it has been rising, prompting heightened scrutiny. Tobacco companies argue the pilot program is critical for restoring legal market competition amid a surge of unregulated products, while public-health advocates warn that rapid authorizations could fuel new addiction trends. The FDA said decisions continue to be guided by science and statutory standards rather than external pressure.

  • EG America and RJR’s Reconfigured Planogram Paying Off

    EG America and RJR’s Reconfigured Planogram Paying Off

    EG America’s said its backbar optimization strategy is driving significant results, with modern oral nicotine products achieving double-digit volume growth in 2025 and outpacing industry trends in the segment. Operating more than 1,500 locations, the retailer partnered with R.J. Reynolds to expand its VELO Plus synthetic nicotine pouch line, using analytics and supplier collaboration to optimize space and assortment. By reallocating underperforming areas and adding new facings without disrupting category balance, EG America created a planogram designed for growth, supporting top-selling segments while maintaining overall visibility.