BAT Embraces Synthetic Nicotine: A New Era for Velo

British American Tobacco is set to release a synthetic nicotine version of its Velo pouches in the U.S. in 2025. This marks a significant move by a major tobacco company into synthetic alternatives, which have been predominantly used by smaller manufacturers to bypass FDA regulations.

In a pivotal shift, British American Tobacco (BAT) will introduce a synthetic version of its Velo nicotine pouches in the U.S., as announced by David Waterfield, president of BAT's U.S. subsidiary, Reynolds American.

Traditionally, big tobacco companies like BAT have relied on naturally derived nicotine from tobacco plants, but the new Velo Plus will contain lab-created synthetic nicotine. This move positions BAT as a leading large-scale company in synthetic nicotine usage.

Synthetic nicotine, once a loophole for evading FDA's lengthy approval, became regulated in April 2022. Velo Plus, acquired by BAT, remains marketable due to a prior FDA application. BAT forecasts significant growth in U.S. vape and nicotine pouch revenues, despite declining combustible tobacco revenues.

(With inputs from agencies.)