By Timothy S. Donahue
Top Takeaways:
- Market retreat: Imperial Brands pulling myblu vaping business from the U.S.
- Regulatory frustration: Company cites “protracted” FDA authorization process
- Strategic pivot: Imperial shifting focus toward Zone nicotine pouches in America
Imperial Brands is exiting the U.S. vaping market, blaming the U.S. Food and Drug Administration’s lengthy authorization process as the company pivots more aggressively toward modern oral nicotine products.
At its fiscal half-year results Tuesday, the London-based tobacco company confirmed it will transition its legacy myblu vapor business out of the United States. “[Given] the protracted regulatory process to approve new innovations, we have taken the decision to transition our legacy myblu vaping business out of the U.S. market,” the company said.
The move marks another major shift in the increasingly difficult U.S. vaping landscape, where years of PMTA delays, enforcement uncertainty, and flavor restrictions have led many manufacturers to rethink their long-term strategies.
Imperial indicated it will instead focus more heavily on oral nicotine products in the United States, particularly its Zone nicotine pouch brand. The company said that its strategy has been supported by the rollout of additional Zone flavors, though it noted that regional revenue was partially affected by one-time promotional activity tied to the brand.
Zone has become increasingly important to Imperial’s next-generation portfolio as nicotine pouches continue to outperform vaping in several regulated markets.
Imperial reported total revenue of £14.72 billion ($20 billion) for the six months ended March 31, up slightly from £14.60 billion a year earlier.
Net revenue from next-generation products—including vaping and oral nicotine—increased 7.5% globally, driven by double-digit growth in multiple markets.
But performance in the Americas weakened sharply. Revenue for next-generation products in the Americas region fell by roughly half to £12 million, reflecting the collapse of the U.S. vape business.
The company’s broader financial results showed ongoing pressure on profitability.
Pretax profit declined to £791 million from £1.30 billion a year earlier, while administrative and other expenses more than doubled due to legal settlements and costs associated with the review of the company’s 2030 strategy. Adjusted operating profit fell 0.5% to £1.64 billion, slightly below analysts’ expectations.
