British American Tobacco PLC grabs nicotine pouch maker Dryft Sciences to expand

() has acquired nicotine pouch maker Dryft Sciences to expand its non-cigarette business in the US.

The FTSE 100-listed tobacco group said the purchase, which has been completed for an undisclosed fee, expands its portfolio of ‘modern oral’ products in the US from 4 to 28 product lines.

Dryft recently submitted a pre-market tobacco product application (PMTA) for its nicotine pouch products with the US Food and Drug Administration (FDA), which was accepted for filing.

The pouch portfolio, which will be included under BAT’s VELO brand, will include a range of nicotine strengths and flavours.

“The modern oral category in the US is developing rapidly. We are excited to expand the portfolio of Velo products to meet the evolving preferences of adult consumers,” said Guy Meldrum, CEO of BAT’s Reynolds American arm in a statement.

“We are confident that, leveraging our strong in-market execution capability, the new Velo portfolio will contribute to accelerated growth,” he added.

The company, which aims to accelerate the growth of its non-cigarette revenues at a faster rate than its total revenue and reach £5bn in 2025, acknowledged that it is “continuing to be clear that combustible cigarettes pose serious health risks, and the only way to avoid these risks is not to start or to quit” and said it was “encouraging those who otherwise continue to smoke, to switch completely to scientifically-substantiated, reduced-risk alternatives”.