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    Chris Reynolds • Neuberger Berman

    Chris Reynolds's questions to Universal Corp (UVV) leadership

    Chris Reynolds's questions to Universal Corp (UVV) leadership • Q4 2025

    Question

    Chris Reynolds of Neuberger Berman asked for commentary on the impact of the growing nicotine pouch market on tobacco leaf demand, questioning whether it represents a net increase or decrease, and inquired about the usability of the leaf after nicotine extraction.

    Answer

    CEO Preston Wigner explained that while Universal participates in the nicotine market, it is a volatile and cost-sensitive commodity. He stated that the company continues to see strong demand for its traditional leaf business and supports customers across their entire product portfolio, including next-generation products. Wigner noted that it is difficult to predict the long-term impact, especially with the potential for synthetic nicotine. He also clarified that after nicotine is extracted from tobacco leaf, the remaining material is typically considered waste and is not reused.

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    Chris Reynolds's questions to Universal Corp (UVV) leadership • Q4 2025

    Question

    Chris Reynolds of Neuberger Berman asked for commentary on the rapidly growing nicotine pouch market, questioning its effect on demand for tobacco leaf and whether it represents a net increase or decrease in demand. He also inquired about the usability of the tobacco leaf after nicotine has been extracted.

    Answer

    CEO Preston Wigner explained that Universal views nicotine pouches as part of its customers' evolving portfolios and sees opportunities in the nicotine market, which is currently a volatile, cost-driven commodity. He stated that Universal's strategy is to participate in next-generation products where it is cost-effective, but leaf demand remains strong. He also clarified that after nicotine is extracted from the leaf, the remaining material is typically considered waste and is not reused.

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