By Timothy S. Donahue
Top Takeaways:
Strategic shift: Tobacco International plans to phase out traditional tobacco processing by 2030.
New platform: The company launched KRATOS, a brand that includes nicotine, nicotine-free, and caffeine pouches, along with energy drinks.
Market pivot: The move reflects a broader industry trend toward smoke-free, functional consumer products.
Tobacco International Inc. announced plans to shift away from traditional tobacco processing by 2030 as it expands into smoke-free and functional consumer products through a newly launched global brand platform called KRATOS.
The Lisbon-based company said the strategic shift marks a major transformation after decades in the global tobacco trade, positioning the firm to compete in emerging nicotine and performance-focused product categories.
KRATOS will function as a multi-category platform focused on modern “energy, focus and performance” lifestyles. The product ecosystem is anticipated to include nicotine pouches, nicotine-free pouches, caffeine and functional pouches, guarana-based energy drinks, and performance beverages.
The company announced in a press release that the move reflects rising global demand for smoke-free alternatives and functional products that meet the needs of the modern consumer. “As a company with deep roots in the tobacco sector, we understand the industry’s history very well,” founder and CEO Atef Hazime told Nicotine Insider. “But we also believe the future of consumer products will look very different from the past.”
Hazime said that the company’s long-term plan focuses on new delivery methods and changing consumer preferences. “We believe the next era will not be defined by smoke,” he said. “It will be defined by functionality, convenience and entirely new product formats.”
Tobacco International’s shift toward smoke-free products started with its entrance into the oral nicotine pouch market. Nearly seven years ago, the company introduced Rebel, an early player in the tobacco-free nicotine pouch space. Nicotine pouches have since quickly grown across Europe, the Middle East, and other major markets as smokers increasingly look for alternatives to combustible products.
“Rebel allowed us to see firsthand how quickly consumer behavior can evolve when better alternatives become available,” Hazime said. “That experience ultimately inspired the development of the KRATOS platform.”
The company stated it has already dedicated significant internal resources to research, product development, and marketing related to oral pouch technologies and functional performance beverages. Tobacco International is also a member of the Global Institute for Novel Nicotine (GINN), an industry group focused on research and regulatory dialogue regarding reduced-risk nicotine products.
Hazime stated that Tobacco International supports science-based regulatory frameworks for emerging nicotine technologies. “Responsible innovation and thoughtful regulation must go hand in hand if the industry is going to move forward,” he said.
