SWITZERLAND
Altria is investing US$372 million to acquire 80% of Burger Sohne’s oral nicotine pouch business called On, further expanding its portfolio beyond cigarettes. Altria will provide global distribution for On, which is similar to chewing tobacco but without the tobacco.
Data from market research firm IRI revealed that the oral pouch category grew to US$60 million last year, a 250% increase from the previous year.
Altria c.e.o., Howard Willard, said, “This acquisition will add another non-combustible product to our portfolio in what we believe is a high-potential, rapidly-developing oral products category.”
According to Altria, On was introduced before August 8, 2016, which was the deadline for new tobacco products to enter the US market without first receiving FDA’s permission. The company also said that On products are currently available in “several thousand” stores in the US in addition to Sweden, Japan, and online.