BAT UK Director Tolga Kilic Says Illicit Nicotine Market Squeezes Legal Retailers Amid Rising Compliance Costs

Jul.28
BAT UK Director Tolga Kilic Says Illicit Nicotine Market Squeezes Legal Retailers Amid Rising Compliance Costs
UK retail publication Grocery Trader has published a viewpoint article from Tolga Kilic, Commercial Director for BAT UK & Ireland, discussing the impact of illicit nicotine products on legitimate retail channels. Kilic said illegal vapes and other illicit nicotine products create competitive pressure for compliant retailers and called for stronger market controls and supply-chain oversight. The comments come as the UK advances policies including the disposable vape ban and Vaping Products Duty, creating a more complex operating environment for legal vape retailers.

Key Points

  • BAT UK & Ireland Commercial Director Tolga Kilic addressed illicit nicotine sales in a viewpoint article.
  • BAT argues illegal nicotine products create pressure on compliant retailers.
  • UK vape retailers face changing regulation, taxation and market competition.
  • Supply-chain transparency is becoming a key issue in illicit market control.
  • The views represent BAT’s position, not official government findings.

2Firsts

July 28, 2026

UK retail publication Grocery Trader has published a viewpoint article from Tolga Kilic, Commercial Director for BAT UK & Ireland, discussing the impact of illicit nicotine products on legitimate retail channels.

Kilic said illegal nicotine products are creating competitive pressure for compliant retailers and called for stronger action to address illicit sales networks.

The comments represent BAT’s industry perspective and do not constitute official findings by UK regulators.

BAT Highlights Impact of Illicit Nicotine Sales on Retailers

In the article, Kilic said the UK nicotine market is undergoing significant change, with legitimate retailers facing both regulatory adjustments and competition from illicit products.

He argued that products sold through illegal channels may avoid regulatory requirements, creating disadvantages for businesses operating within the rules.

For legitimate retailers, product sourcing, supplier verification and compliance management have become increasingly important.

UK Vape Market Faces Regulatory and Business Pressures

The UK vape sector has experienced several major policy changes in recent years.

The government has introduced the disposable vape ban and is moving forward with the Vaping Products Duty framework, while regulators continue monitoring illegal vape products entering the market.

Against this backdrop, legal vape retailers face not only product compliance requirements but also higher operating costs and competitive pressure from illicit channels.

BAT argues that stronger enforcement against illegal sales would help protect compliant businesses.

Supply Chain Transparency Becomes Key to Market Control

Kilic emphasized that addressing illicit nicotine sales requires attention across the wider supply chain.

From manufacturers and importers to wholesalers and retailers, transparency around product origins and distribution channels has become increasingly important.

For the vape industry, complex international supply chains can make enforcement more challenging. Products entering the market through unauthorized channels may create price and distribution disadvantages for legitimate businesses.

Industry Calls for Greater Cooperation Against Illicit Sales

BAT said stronger cooperation among regulators, retailers and industry participants is needed to reduce illicit nicotine sales.

For retailers, maintaining compliant supply chains, verifying product sources and working with trusted suppliers are important steps to reduce business risks.

As UK vape regulation continues to evolve, market competition is expected to depend increasingly on compliance capabilities alongside products and brands.

UK Nicotine Market Moves Toward Stricter Oversight

Illicit nicotine sales have become an important issue in the UK market.

From the disposable vape ban and Vaping Products Duty to retail-level enforcement efforts, UK oversight is increasingly covering products, taxation and distribution channels.

For the vape industry, future competition will increasingly depend on compliant supply chains, transparent channels and consumer trust.

Follow 2Firsts for the latest updates on global tobacco and nicotine regulation, industry developments and market trends.

Cover Image source: Grocery Trader

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