Altria: Submitting illegal nicotine bag data to FDA, similar to the early e-cigarette black market

Altria: Submitting illegal nicotine bag data to FDA, similar to the early e-cigarette black market

Altria reports to the FDA about a surge in the illegal nicotine pouch market, noting that a large number of products come from China, similar to the early stages of the illegal e-cigarette market a few years ago. Altria calls on the FDA to take decisive action to curb this trend.

On July 31, Altria said it had submitted data to the FDA on the growth of illegal nicotine pouches, saying it was similar to the early stages of the current large black market e-cigarette market in the United States.

Altria and British American Tobacco have lost a large amount of sales in the United States to illegally sold e-cigarettes, including illegal disposable e-cigarettes from China.

Altria said the supply chain supporting this market is driving illegal activity for a variety of nicotine products, and they have found more than 350 illegal nicotine pouches on sale, with new brands launched every month.

"This illicit market is similar to the start of the illicit e-cigarette market several years ago," Altria CEO William Gifford said on a call with analysts to discuss the company's second-quarter results, adding that the company had shared data on the problem with the FDA earlier this month. "We believe the FDA must act decisively to re-regulate the oral nicotine pouch category to prevent another large illicit market from forming." The FDA did not immediately respond to a request for comment. Gifford said Altria has also observed an increase in illegal cigarettes, with a survey of discarded packages in California finding that about 25% of them were non-U.S. brands, primarily from duty-free channels or China. Earlier this month, analysts also alerted the chief financial officer of Philip Morris International after they observed nicotine pouches intended for the Scandinavian market being sold in the U.S.