Reynolds American's Vaping Products Faces FDA Hurdle, Raises Concerns Over Youth Appeal

The FDA has reportedly ordered Reynolds American to stop selling menthol-flavored versions of its Vuse Alto e-cigarette.

Reynolds American is a subsidiary of British American Tobacco PLC BTI BTAFF.

Vuse Alto, one of Reynolds' flagship vaping product lines, dominated the U.S. e-cigarette sales scene, accounting for approximately 40% of the market in retail stores over the past year. 

Citing the FDA, the Wall Street Journal notes that Reynolds failed to provide sufficient evidence that these products offer significant public health benefits for adult cigarette smokers that outweigh the risks posed to young individuals. 

Noting Goldman Sachs analyst's analysis of Nielsen data, WSJ noted that menthol was the brand's most favored flavor, making up about 29% of e-cigarette sales in the past year, amounting to a staggering $1.6 billion, excluding sales from vape shops and online platforms.

Juul, an e-cigarette player, now stands as the second most popular brand in the U.S. vaping industry, with its tobacco and menthol flavors together representing about 25% of e-cigarette sales in Nielsen-tracked stores. 

Vuse Alto's tobacco flavors constituted 9% of the U.S. e-cigarette market, the analysis highlighted. 

However, Reynolds faced an FDA rejection regarding reintroducing Alto's mixed-berry flavor due to concerns related to underage vaping.

Federal survey data from last year also revealed the rising popularity of Vuse among young people, raising concerns about its appeal to adolescents. 

Approximately 12.5% of middle- and high-school students who vaped within the last month reported Vuse as their preferred brand.

The FDA had briefly ordered the suspension of Juul Labs' vaping product sales last year due to unresolved technical queries within the company's application, although this ban is currently under appeal.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.