BAT Pioneers with Synthetic Nicotine Velo Pouches in U.S.

British American Tobacco (BAT) will introduce a synthetic nicotine variant of its Velo pouches in the United States. This move is indicative of the company's strategic pivot toward synthetic nicotine, aligning with evolving industry trends and regulatory environments to potentially capitalize on growing market segments.

British American Tobacco (BAT) is set to make waves in the American market with the launch of its Velo nicotine pouches using synthetic nicotine, according to David Waterfield, president of the company's U.S. subsidiary, Reynolds American.

Traditionally, smoking alternatives from major tobacco companies, including BAT, have used natural nicotine derived from tobacco plants. However, synthetic nicotine, crafted in laboratories, is seeing increased adoption. BAT's new offering, Velo Plus, set for a 2025 launch, will be among the first major tobacco products to use synthetic nicotine, showcasing a significant shift in strategy.

Synthetic nicotine gained traction in the U.S due to easier regulatory pathways until the FDA amended its rules in April 2022. Despite these changes, BAT's Velo Plus enters the market through an acquired FDA application, anticipating growing revenues in both nicotine pouches and vape segments.

(With inputs from agencies.)