I am rather interested in finding out whether nicotine pouches (unlike vapes) can be significant sources of net income for tobacco majors. This requires a combination of long-term brand loyalty and comprehensive regulatory enforcement, as in cigarettes and - increasingly likely - in heat-not-burn. This will probably take some time and I can't claim to estimate the result ahead.
I held significant positions in PM and BATS, with nicotine pouches being a part of my investment thesis. Now, however, I see no brand loyalty, only consumers constantly testing new brands and hunting for better value. It seems unlikely this will become a high-margin money printer like cigarettes; instead, it looks to be just another FMCG category defined by intense competition.
Very interesting read Ali.
How do you look at the competitive situation between Zyn and BTI's Velo & Velo+ ?
TV
I am rather interested in finding out whether nicotine pouches (unlike vapes) can be significant sources of net income for tobacco majors. This requires a combination of long-term brand loyalty and comprehensive regulatory enforcement, as in cigarettes and - increasingly likely - in heat-not-burn. This will probably take some time and I can't claim to estimate the result ahead.
I held significant positions in PM and BATS, with nicotine pouches being a part of my investment thesis. Now, however, I see no brand loyalty, only consumers constantly testing new brands and hunting for better value. It seems unlikely this will become a high-margin money printer like cigarettes; instead, it looks to be just another FMCG category defined by intense competition.
Thank you so much, Ali, for the great presentation and report 🙏 I really enjoyed it!