Tag: pouches

  • Online Shop Northerner Shifts to Tobacco-Free Future

    Online Shop Northerner Shifts to Tobacco-Free Future

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    Northerner, an online seller of smokeless tobacco and nicotine products for 25 years, said starting this month, it will exclusively sell tobacco-free nicotine pouches and other modern oral nicotine products.

    The announcement marks a new chapter in the company’s commitment to public health and the tobacco harm reduction movement, the Missouri City, Texas-based company said.

    “Having been in the smokeless tobacco business for 25 years, the decision to move away from tobacco has not been easy,” said Sarah Krysalka, senior director of commercial partnerships and external affairs at Northerner. “But the trends are clear.

    “More Americans are choosing tobacco leaf-free options, and we aim to stay at the forefront of this movement by offering the best assortment of modern oral nicotine products to meet the evolving needs of adult consumers.”

    With the rise of non-combustible nicotine options like pouches, the company said it recognizes the need to adapt to the shifting market landscape and provide consumers with tobacco leaf-free and other modern oral nicotine product alternatives to combustible cigarettes, according to a press release.

    “By leaving the tobacco market, Northerner will shift its focus to fulfilling the growing demand for nicotine pouches and other modern oral nicotine products,” said Krysalka. “Our goal is to cater to the changing needs of adult nicotine users while educating tobacco consumers about tobacco leaf-free nicotine alternatives.”

    Northerner.com is a website operated by Northerner Scandinavia Inc, a U.S. subsidiary of Northerner Scandinavia AB and Haypp Group.

  • Consumer Files Suit for Alleged Overcharging for Zyn

    Consumer Files Suit for Alleged Overcharging for Zyn

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    Swedish Match North America is being sued for allegedly overcharging U.S. customers for its popular tobacco-free Zyn nicotine pouches.

    The class action lawsuit, filed on Monday in federal court in Richmond, Virginia, alleges that the Philip Morris International subsidiary is violating federal and state antitrust laws concerning the market for modern oral nicotine pouches.

    The plaintiff, a resident of Florida, claimed that Swedish Match illegally gained monopoly power through various business practices aimed at eliminating rival Dryft from the market, Reuters reports.

    Swedish Match now has an estimated 80 percent of the market for nicotine pouches, which the company sells in different flavors and strengths for about $6 a tin, according to the lawsuit.

    In a statement, Philip Morris, which was not named as a defendant, said, “We believe the plaintiff’s claims are without merit, and we intend to vigorously defend against them.

    Marlboro maker Philip Morris, in 2022, acquired the Swedish tobacco and nicotine products company for $16 billion. Philip Morris has stated an ambition to move away from health-harming cigarettes.

    The consumer lawsuit seeks class action status for Zyn consumers and damages of more than $5 million.

  • New Canadian Rules Trigger Pouch Shortage

    New Canadian Rules Trigger Pouch Shortage

    Photo: rawpixel.com

    Canada’s new restriction on nicotine pouch sales have left many users scrambling to find the product, reports Western Standard.

    On Aug. 28, the federal government prohibited the sale of nicotine pouches in convenience stores and banned flavors. Modern oral products can now only be legally sold behind the counter in pharmacies.

    In the immediate wake of the ban, some consumers reported difficulty finding the nicotine pouches, as many Canadian pharmacies do not have them in stock yet, and some do not plan to carry the products.

    Health Canada licensed Imperial Tobacco Canada’s (ITCAN) Zonnic nicotine pouches last year, but officials now say they have become too easy for young people to obtain.

    Tobacco harm reduction proponents say the recent measure has made pouches harder to find for adults who use them to stop smoking. Earlier this year, ITCAN launched a public awareness campaign about its Zonnic nicotine pouches. The company said it aimed to dispel myths and prove accurate, science-based information about nicotine-replacement therapies and Zonnic’s potential role in reducing smoking in Canada.

  • Zyn Adds 450 Jobs, $232 Million Investment in Kentucky

    Zyn Adds 450 Jobs, $232 Million Investment in Kentucky

    Credit: PMI

    The expansion will deliver $277 million annually in regional economic impact and increase the plant’s workforce by 40 percent.

    Philip Morris International’s Swedish Match affiliate is announcing an investment of $232 million to expand the production capacity of its manufacturing facility in Owensboro, Kentucky.

    The expansion is expected to create an additional 450 direct jobs with an ongoing annual economic impact of $277 million and 410 indirect jobs for the Commonwealth of Kentucky. The facility produces ZYN nicotine pouches to help meet the growing demand from legal-age consumers switching from cigarettes or other traditional tobacco products.

    “Philip Morris International’s Swedish Match affiliate has been an important partner and job creator in this region for many years, and I’m excited to see this incredible new investment and the 450 great job opportunities it is creating for families in Owensboro and the surrounding region.”

    Kentucky Gov. Andy Beshear

    “Philip Morris International’s Swedish Match affiliate has been an important partner and job creator in this region for many years, and I’m excited to see this incredible new investment and the 450 great job opportunities it is creating for families in Owensboro and the surrounding region,” Kentucky Gov. Andy Beshear said. “Our economy continues to set records, and today’s announcement shows we’re bringing jobs to our people instead making our people move to the jobs. I want to thank and congratulate company leadership for doubling down here in the Commonwealth and look forward to many more years of prosperity.”

    Construction of the expanded facility is already underway, including adding more production space. Progressive production increases are expected during the project, which is targeted for completion by the second quarter of 2025. The construction phase alone is expected to create nearly 2,800 jobs and have an economic impact of about $414 million.

    Career opportunities at the facility cover a wide range of skill levels, including positions such as engineers, production staff, technicians, and quality control. Career opportunities can be found here.

    In addition to facility expansion and ongoing optimization of processes to increase capacity progressively over the coming quarters, the Kentucky facility will move from a 24-hour, five-days-per-week schedule to a 24-hour, seven-days-per-week schedule to boost production starting in the fourth quarter of this year.

    The Swedish Match Owensboro facility currently has about 1,100 employees. The ongoing expansion of the facility in Kentucky is expected to provide around 900 million cans of capacity by 2025.

    In July, PMI announced an investment of $600 million over the next two years through its U.S. affiliate to open a nicotine pouch manufacturing facility in Aurora, Colo. The Aurora facility and Owensboro expansion are designed to provide the capacity needed in the near and mid-term to meet ZYN’s current growth rate with U.S. legal-age nicotine consumers.

  • Nicotine Pouch Sales Rising at Haypp Group

    Nicotine Pouch Sales Rising at Haypp Group

    Photo: Haypp Group

    The Haypp Group, the world’s largest online retailer of nicotine pouches, reported net sales of SEK942.8 million ($89.66 million) for the second quarter of 2024, up 23 percent over the comparable 2023 period.

    Gross profit increased to SEK135.2 million, corresponding to a gross margin of 14.3 percent. Adjusted earnings before interest and taxes rose to SEK34.4 million, mainly due to the higher gross margin, increased volume as well as efficiency gains, partially offset by continued investments into additional capabilities.

    The company’s nicotine pouch volume grew by 43 percent over the second quarter of 2023.

    “Haypp group continued to show a very strong performance in the second quarter with YoY Nicotine Pouch volume growth of 43 percent,” said Haypp Group CEO Gavin O’Dowd in a statement.

    “This is accelerating from prior quarters as the category continues to thrive in our growth markets due to the increasing appetite for risk reduced products. While the category experienced some turbulence in the USA during the quarter, we were well positioned and our volume grew around 70 percent. The investments in our business operations have continued to deliver value with an increase of 68 percent in our adjusted EBIT. This robust growth, over many years shows how robust our business is, irrespective of the economic environment.”

    The Haypp Group’s interim report is available here.

  • Cigarette, Vape Sales Slow While Pouches Boom

    Cigarette, Vape Sales Slow While Pouches Boom

    Credit: Jet City Image

    Sales of cigarettes and e-cigarettes have declined in the last two weeks, while sales of oral nicotine pouches have seen significant growth, according to analysts at TD Cowen.

    They say in a research note that cigarette volumes across multiple channels were down 10 percent in the two weeks ending Jan. 13, a steeper decline than the trailing four weeks and 12 weeks.

    Bonnie Herzog, managing director at Goldman Sachs, remain cautious on the U.S. tobacco/nicotine industry in the near term as the tobacco consumer remains under substantial financial pressure.

    She stated in an email that many consumers are being more selective in their purchases and turning to more affordable alternatives, such as 4th tier/deep discount cigarettes, modern oral tobacco and, increasingly, illicit or gray market disposable vapor products.

    “Shifts in category and consumer spending dynamics have been further exacerbated by flavor ban momentum at the state & federal level (Final Rule expected in March) and uncertainty with regard to the future of the e-cig category and category innovation (with FDA PMTA reviews still pending on big market brands such as JUUL and VUSE Alto, as well as menthol variants more broadly),” Herzog wrote.

    E-cigarette sales fell 11.3 percent in the two-week period and 10.7 percent in the four-week period, according to Barron’s.

    Sales of smokeless tobacco, including nicotine pouches, meanwhile grew 12.1 percent in the two-week period and 13 percent in the four-week period.

    The smokeless category continues to show strong dollar sales growth driven by the Zyn brand, the analysts say.