Key points:
- Nordic Spirit, the first nicotine pouch brand in the Philippines, is experiencing 23% monthly sales growth since its May 2023 debut.
- JTI sees the Philippines as a high-growth market for smoke-free nicotine alternatives, driven by demand for innovation and convenience.
- The company’s Swedish facility is scaling up production to meet rising international demand, including in the Philippines.
Japan Tobacco International (JTI) is doubling down on its smoke-free nicotine strategy in the Philippines, with executives touting robust growth for its oral nicotine pouch brand, Nordic Spirit, and predicting continued expansion in the market.
At a recent briefing in Stockholm, Karin Tan, JTI Philippines’ Director for Reduced Risk Products, said Nordic Spirit is resonating with adult Filipino consumers seeking alternatives to combustible cigarettes. “We are seeing sales actually growing by 23 percent month-on-month. There is actually traction in the market,” Tan told visiting journalists, citing data from convenience stores like 7-Eleven and Uncle John’s.
Nordic Spirit, which entered the Philippine market in May 2023, is the country’s first nicotine pouch brand. Unlike traditional tobacco products, it contains nicotine extracted from tobacco but no actual tobacco leaf. The product is available in two formats—a 20-pouch can priced at P135 and a five-pouch pocket pack for P35—and comes in different strengths to cater to both new and experienced users.
“It’s all about giving consumers pleasurable choices,” Tan said, adding that consumers favor the product’s convenience, flavor variety, and satisfaction. “Because it is smoke-free, it can be used in places where smoking is banned, like in the office, a car, or even on a flight.”
A JTI survey of 7,000 users found that 80% reported a positive experience with nicotine pouches.
The Philippines is now viewed as a key growth market for JTI’s nicotine pouch business. The company attributes this to rising consumer demand for smoke-free alternatives and innovation in flavors.
To meet rising demand, JTI’s manufacturing facility in Vårgårda, Sweden, is ramping up production of Nordic Spirit for global markets including the Philippines, the UK, Canada, and France. The Vårgårda plant, operated by Nordic Snus and part of the JTI Group since 2007, spans over 5,000 square meters and is central to JTI’s push into next-generation products.
JTI is Sweden’s leading cigarette supplier and has increasingly positioned itself as a leader in tobacco harm reduction. “Nordic Spirit and brands like LD and Vårgårda reflect Sweden’s rich heritage and commitment to innovation,” the company said.
While nicotine pouches are believed to present fewer health risks than combustible cigarettes, JTI acknowledges they still contain nicotine and are intended for adult consumers.
Despite a ban on e-cigarettes in some markets, JTI hopes the regulatory environment in the Philippines will remain conducive to smoke-free innovations. The company continues to market Nordic Spirit through traditional retail and online platforms nationwide.
