ITG Brands Acquires Nicotine Pouches From Canadian Manufacturer

Company plans to enter U.S. modern oral nicotine market in 2024
ITG Brands
Image/ITG Brands

ITG Brands, a subsidiary of tobacco company Imperial Brands PLC, has acquired a range of nicotine pouches from Canada-based manufacturer TJP Labs. ITG Brands hopes to enter the U.S. modern oral nicotine (MON) market with the products in early 2024.

“This is an opportunity to expand our next generation product offerings in the U.S. and to be able to offer our legal adult consumers a wider range of product options,” said Kim Reed, president and CEO of ITG Brands. “We look forward to a long and successful partnership with TJP Labs.”

ITG Brands manufactures a diverse range of cigarettes, cigars and vapor products. Its parent company offers MON products under the Zone X and Skruf brands in select European markets, but not the United States. ITG Brands will conduct consumer market research and rebrand before launching TJP's nicotine pouches stateside.

The $83.8 million deal, with an additional deferred sum based on sales volume over five years, includes 14 product variants, TJP Labs said. Information on the specific flavors or nicotine levels of the pouches was not immediately available.

“Imperial has extensive brand development, marketing and sales execution capabilities in the U.S. and a long global track record of operating responsibly. We look forward to a strong and ongoing partnership,” David Richmond-Peck, CEO of TJP Labs, said. “This transaction supports TJP Labs’ commitment to developing and producing products to promote global harm reduction, consumer choice and flexibility.”

TJP Labs will continue to manufacture the oral nicotine pouches under contract for ITG Brands. TJP Labs in January 2022 said that a premarket tobacco product application (PMTA) for its brand L!X nicotine pouches was accepted for further review.

“Today’s transaction is aligned to our focused, challenger approach in next generation products and to our disciplined capital allocation framework,” Stefan Bomhard, Group CEO of Imperial Brands, said. “While it will take time to build our presence in this category, the proposition we are acquiring is clearly differentiated within the U.S. market and has tested strongly with consumers.”

ITG Brands, Greensboro, North Carolina, is a member of the Bristol, England-based Imperial Brands family.

TJP Labs, Ontario, Canada, is a manufacturer of products focusing on modern oral nicotine pouches and oral delivery solutions for caffeine and other nutraceutical products.

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