Scott Cederberg

Scott Cederberg inquired about the potential impact of state-level tax hikes on nicotine pouches on the pricing and promotional environment.

Answer

Graham Purdy (CEO) explained that state-level taxation impacts all products equally, creating a level playing field. He anticipated that taxes would likely grow over the long term to resemble existing tobacco products, but this does not disadvantage any specific manufacturer.

Scott Cederberg inquired about the near-term evolution of nicotine pouch consumption, specifically whether growth will be driven more by existing consumers increasing usage or new users entering the category, and also asked about the potential impact of state-level tax hikes on nicotine pouches on the pricing and promotional environment.

Answer

CEO Graham Purdy confirmed that growth is expected from both existing consumers increasing their consumption and new users transitioning from other tobacco products like cigarettes and vapes. Regarding taxes, he noted that state-level taxation impacts all products equally, creating a level playing field, and anticipated that taxes would likely grow over the long term to resemble those on existing tobacco products.