By Timothy S. Donahue

Top Takeaways:

• Oral expansion: Imperial Brands is acquiring Black Buffalo to deepen its position in the rapidly growing U.S. modern oral nicotine market.
• Beyond pouches: The deal adds tobacco-free long cut and moist smokeless-style products to Imperial’s next-generation portfolio.
• Strategic shift: The acquisition comes as major tobacco companies accelerate investment in smoke-free categories.

Imperial Brands is deepening its expansion into the U.S. modern oral nicotine market through a deal to acquire Black Buffalo for $150 million upfront, with additional performance-based payments tied to future growth.

The acquisition gives Imperial and its U.S. subsidiary, ITG Brands, a broader position in the fast-growing oral nicotine category beyond traditional nicotine pouches. Founded in 2015, Black Buffalo markets tobacco-free long-cut and pouch products designed to replicate the experience of moist smokeless tobacco without using tobacco leaf.

The company manufactures its products in North Carolina from U.S.-grown leafy greens and has steadily expanded distribution across convenience stores, smoke shops, and online channels. Imperial said the transaction strengthens its long-term strategy for next-generation products as cigarette volumes continue to decline globally.

“This acquisition marks another important step in our strategic transformation,” Imperial Brands said in announcing the deal, describing modern oral nicotine as one of the company’s priority growth areas.

The company added that Black Buffalo’s positioning complements Imperial’s existing U.S. oral nicotine portfolio, led by Zone. Imperial said Zone recently reached roughly 2.8% of the national market share and is now sold in more than 109,000 retail outlets across the United States.

The broader U.S. modern oral category — driven largely by nicotine pouches and alternative oral nicotine formats — generated approximately $6.6 billion in retail sales over the past year and continues to post double-digit growth, according to company figures.

Black Buffalo Chief Executive Officer Matthew Hanson called the transaction a major milestone in the company’s long-term expansion. “Imperial’s scale, commercial capabilities and commitment to next-generation products make them the ideal partner for Black Buffalo’s next chapter,” Hanson said in a company statement.

Imperial executives likewise framed the deal as part of the company’s broader transition to smoke-free and reduced-risk categories. “We believe modern oral nicotine products represent a significant long-term opportunity,” the company said.

The acquisition also highlights how major global tobacco companies are increasingly diversifying beyond standard nicotine pouches into adjacent oral categories to appeal to adult smokeless tobacco consumers seeking alternatives to traditional moist snuff and dip.