Chill Brands to Pull Tobacco-Free Nicotine Products from Sale in US
August 03 2022 - 2:18AM
Dow Jones News
By Joe Hoppe
Chill Brands Group PLC said Wednesday that it will end future
development and U.S. sales of its tobacco-free nicotine product
line in response to additional U.S. regulatory restrictions for
synthetic nicotine products.
The London-listed cannabidiol-products company said the
additional restrictions for the products would incur substantial
costs to manufacturers and retailers, and that it is working with
international partners to transfer remaining synthetic nicotine
inventory for sale.
All of Chill's other products are unaffected.
The company said a federal funding bill amending the definition
of a tobacco product was passed by U.S. Congress in March, giving
the U.S. Food and Drug Administration authority over synthetic
nicotine--including Chill's "tobacco-free nicotine" chew pouch
products, launched in December. As a result, Chill would have been
required to submit Premarket Tobacco Applications for its products
to legally remain on sale, a process that could exceed a full-cost
of $400,000 per flavor and which it views as commercially
unviable.
"Naturally this is disappointing, but this decision will at
least allow us to avoid expending further capital which will be
better allocated to developing other products and potential revenue
streams," Chief Executive Callum Sommerton said.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
August 03, 2022 03:03 ET (07:03 GMT)
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