BAT plans to launch synthetic nicotine e-cigarettes in South Korea this month, but the plan has encountered obstacles as convenience store chains and major e-cigarette distributors refuse to sell the product, citing a lack of legal basis for synthetic nicotine tobacco, according to Hankyung on November 3.
According to sources in the tobacco industry, BAT Korea recently proposed the introduction of the synthetic nicotine e-cigarette "Nomad" to convenience store chains and major e-cigarette distributors, but it was rejected. A representative of a convenience store company stated that without a legal framework and safety verification, selling the product would be challenging.
In April, the company filed a trademark application for "Nomad" through its subsidiary Nico Ventures Holdings, officially planning to launch the synthetic nicotine e-cigarette. This would be the first synthetic nicotine tobacco product introduced in South Korea, whereas other major cigarette manufacturers, such as KT&G, Philip Morris International (PMI), and Japan Tobacco International (JTI), have not considered releasing this type of product globally.
It is estimated that approximately 90% of e-cigarettes sold domestically in South Korea contain synthetic nicotine, mostly produced in China. According to Korean Customs, synthetic nicotine imports from January to September this year reached 316 tons, far exceeding last year’s total of 216 tons.
Currently, South Korea’s existing tobacco regulations do not cover synthetic nicotine, meaning it is not subject to tobacco consumption taxes, advertising bans, or harmful warning labels. As a result, synthetic nicotine e-cigarettes are easily accessible online and at unmanned retail points, which is considered a major factor in youth smoking issues.
Industry insiders suggest that with convenience store chains and major distributors declining to sell it, BAT’s “Nomad” launch may be canceled. One insider remarked, "Our only option would be to sign direct supply contracts with small vape shops that do not deal with major distributors, but if that happens, sales will be minimal."
Moreover, BAT’s share of the e-cigarette market in South Korea is unlikely to recover. According to industry data, BAT’s share in the convenience store and retail market in South Korea from January to October this year was 11.03%, down from 11.46% last year.
There is skepticism within the industry as to whether BAT genuinely intends to launch synthetic nicotine e-cigarettes. A representative from a major tobacco company suggested that BAT might be aiming to push for regulatory legislation through the announcement of the “Nomad” plan. Once synthetic nicotine is regulated, more consumers may shift to BAT’s “Vuse Go” e-cigarette, despite the sales challenges it currently faces.
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