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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] KT&G plans to fully scale up its nicotine pouch business—often referred to as “gum tobacco”—beginning next year, following the completion of its acquisition of ASF (Another Snus Factory), a Nordic nicotine pouch manufacturer.
According to industry sources, KT&G will finalize the acquisition of ASF within this year through a special purpose company (SPC) jointly established with U.S. tobacco company Altria. KT&G will acquire 100% of ASF for 260 billion won, then sell 49% to Altria, leaving KT&G with 51% ownership and approximately 160 billion won in capital contribution.
KT&G stated that from next year, it will expand ASF’s existing footprint in the five Nordic markets—Iceland, Sweden, Norway, Denmark, and Finland—into Europe, the Middle East, Africa, Asia, and North America.
Nicotine pouches are smoke-free products placed between the gum and lip, allowing nicotine absorption without combustion. Popular in Northern Europe as a smoking alternative or cessation aid, they have also gained traction in the U.S. as an alternative to energy drinks for work, exercise, or studying.
According to Euromonitor, the global nicotine pouch market has surged from $1.65 billion in 2020 to $11.23 billion in 2023, and is projected to grow more than 30% this year to $14.76 billion.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
