• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

British American Tobacco to launch synthetic nicotine pouches

by October 17, 2024
written by October 17, 2024

LONDON (Reuters) – British American Tobacco (NYSE:BTI) (BAT (LON:BATS)) will launch a version of its Velo nicotine pouches using synthetic nicotine in the United States, David Waterfield, president of the company’s U.S. subsidiary Reynolds American (NYSE:RAI), said on Wednesday.

Smoking alternatives like vapes from big tobacco companies, including BAT, usually contain naturally occurring nicotine derived from the tobacco plant, whereas synthetic nicotine is made in a lab from chemicals.

Waterfield said BAT’s new Velo product, Velo Plus, due to launch in 2025 and offering more nicotine strengths, contained synthetic nicotine – one of the first clear examples of synthetic nicotine use by a big tobacco company.

“Nicotine derived from tobacco and synthetic nicotine, from a chemical point of view, they are the same,” Waterfield told investors at a capital markets event.

He added that BAT would look at other opportunities in synthetic nicotine going forward.

Synthetic nicotine began being used more widely in the United States in recent years as a means to avoid a lengthy application process with the U.S. Food and Drug Administration (FDA), which manufacturers were required to undergo in order to market new nicotine products.

It has so far been used mostly by smaller manufacturers of vapes or nicotine pouches, which users insert under the lip to get a buzz.

Initially, the FDA only had authority over naturally occurring nicotine, so manufacturers of synthetic nicotine products did not have to follow the FDA’s application process. The law was changed in April 2022.

Waterfield said that Velo Plus was a product it acquired. An FDA application for the product was submitted by its previous owner before a May 2022 deadline, meaning it can stay on the market while its application is pending, Waterfield said.

The FDA subsequently told Reuters that a pending application is not sufficient for an synthetic nicotine product to be sold in the U.S., and products on the market without FDA authorisation may be subject to enforcement.

BAT estimates that the size of U.S. industry-wide vape revenues will grow from around 9 billion pounds ($11.7 billion) today to up to 14 billion pounds by 2030, Waterfield said. It expects U.S. nicotine pouch industry revenues to grow from 1.7 billion pounds to up to 7 billion pounds over the same period.

BAT sees current U.S. combustible tobacco revenue declines of around 9% as “abnormal”, Waterfield said, adding BAT expects U.S. industry revenue growth to settle at around 1% for the rest of the decade.

($1 = 0.7682 pounds)

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
GM to invest $625 million in joint venture to mine EV battery raw materials in U.S.
next post
US regional banks capitalize on rising deal fees to counter high deposit costs

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Indonesia stocks lower at close of trade; IDX Composite Index down 1.11%
    • Dow Jones, Nasdaq, S&P 500 weekly preview: Markets await CPI, retail sales data

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy