British American Tobacco postpones release of synthetic nicotine e-cigarette, expected to be launched in the fourth quarter

British American Tobacco postpones release of synthetic nicotine e-cigarette, expected to be launched in the fourth quarter

British American Tobacco's Korean subsidiary has postponed the launch of its synthetic nicotine e-cigarettes to the fourth quarter due to production preparation issues, a move that could intensify competition in the Korean market as the product is not legally restricted.

British American Tobacco (BAT) has decided to postpone the launch of its synthetic nicotine e-cigarettes to the fourth quarter, N.News reported on August 27.

Despite the delay compared to the initial plan, the company still plans to launch the product in the fourth quarter.

BAT's Korean subsidiary Rothmans revealed that BAT originally planned to launch synthetic nicotine e-cigarettes in the third quarter, but the launch plan was postponed due to production preparation and other issues.

However, the company still said that even with the delay, the product will be available in the fourth quarter.

A representative of the company said,

"BAT's plan to launch synthetic nicotine e-cigarettes in the domestic market has not changed. Although the release time has been delayed due to production preparations and other reasons, this product will definitely be launched in the fourth quarter."

In May this year (2024), BAT announced that it would launch a new synthetic nicotine e-cigarette product in South Korea, and revealed that it would pass on the tax savings to consumers.

In July last year (2023), the company launched "Vuse" containing natural nicotine e-liquid in the Korean market, but it was at a disadvantage in the competition compared with synthetic nicotine e-cigarettes that do not need to pay tobacco taxes.

At present, the Korean Tobacco Business Act only defines products made with tobacco leaves as raw materials as tobacco products, which makes synthetic nicotine e-cigarettes unrestricted by law.

Synthetic nicotine e-cigarettes are cheap, and there is no law enforcement and punishment in no-smoking areas. They can even be sold near schools, lacking relevant legal constraints. In addition, these products can be sold freely on the Internet, and advertising and marketing are not restricted, making teenagers vulnerable. Although the South Korean government is conducting research on synthetic nicotine e-cigarettes and proposing relevant regulatory bills in the National Assembly, progress is slow.

For this reason, BAT announced that it will officially launch synthetic nicotine e-cigarettes, which will further intensify market competition.

An industry insider pointed out:

"For BAT, which is entering the e-cigarette market, synthetic nicotine e-cigarettes without any supervision undoubtedly have a relative advantage. Therefore, unless the government and the National Assembly refine the relevant regulations, this trend will continue."