US bans British American Tobacco’s best-selling vape brand Vuse

The US health regulator on Thursday blocked the sale of six flavours of British American Tobacco’s (BAT) main vape brand, Vuse Alto, in the market including the menthol flavour that makes up a large portion of its sales.

The US Food and Drug Administration’s (FDA) marketing denial orders (MDOs) for RJ Reynolds, owned by BAT, include three menthol-flavoured and three mixed berry-flavoured e-cigarette products, with each flavour being offered in three nicotine strengths.

“RJ Reynolds Vapor company intends to challenge denials and will seek a stay of enforcement of menthol denial immediately,” BAT said.

According to the FDA, evidence submitted by RJ Reynolds “did not demonstrate that the menthol- and mixed berry-flavored products provided an added benefit for adults who smoke cigarettes — in terms of complete switching or significant smoking reduction — relative to that of tobacco-flavored products that is sufficient to outweigh the known risks to youth”.

But the company may submit new applications for the products that are subject to these MDOs, it said.

In the past, companies have challenged FDA decisions in court, with some success.

A subsidiary of rival Imperial Brands had disputed the FDA’s decision to ban its flavored and unflavored vape products. A U.S. appeals court in August agreed that its unflavored products should be reviewed again by the FDA.

Vuse Alto makes up the vast majority of BAT’s vape volumes in the US, with menthol flavours accounting for about 70% of that, Jefferies said in a March 2023 note.

A rise in disposable vapes has dented BAT’s business in the world’s largest market for such products. Its US vape volumes were down 6.5% in the first half of 2023.

BAT bought out RJ Reynolds for $49.4bn in 2017, gaining access to the lucrative and highly regulated US market after a long absence since 2004.

Reuters