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.