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Illicit nicotine pouches on the rise in US, Altria CEO says
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Illicit nicotine pouches on the rise in US, Altria CEO says
Jul 31, 2024 8:38 AM

July 31 (Reuters) - Marlboro maker Altria ( MO ) said on

Wednesday it had sent data to the U.S. Food and Drug

Administration on growth in illegal nicotine pouches, saying it

echoed the early stages of a now massive black market for vapes

in the country.

Cigarette makers like Altria ( MO ) and British American Tobacco ( BTI )

have lost substantial U.S. sales to e-cigarettes that

are being illegally marketed without FDA authorisation,

including illegal disposable vapes from China.

Altria ( MO ) said the supply chains supporting this market were

enabling illegal activity across multiple nicotine products, and

it had identified more than 350 unique illegal nicotine pouches

on sale with new brands launching every month.

"This illicit market echoes the beginning of the illicit

e-vapor market several years ago," Altria ( MO ) CEO William Gifford

told analysts on a call to discuss its second-quarter results,

adding the company had shared data on the issue with the FDA

earlier this month.

"We believe it is critical that the FDA acts decisively to

regain control of the oral nicotine pouch category to prevent

another widespread illicit market from taking hold," he said.

The FDA did not immediately respond to a request for

comment.

Gifford said Altria ( MO ) had also observed an increase in illicit

cigarettes, one survey of discarded packs in California finding

that some 25% were non-U.S. brands, mostly originating from

duty-free channels or China, he said.

Earlier this month, analysts also warned Philip Morris

International's ( PM ) chief financial officer that they had

observed sales of its nicotine pouches intended for the

Scandinavian market on sale in the United States.

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