Smoker Friendly will offer VLN reduced nicotine cigarettes in partnership with 22nd Century Group, launching new product lines in 2025.
Quiver AI Summary
22nd Century Group, Inc. has announced a partnership with Smoker Friendly to launch reduced nicotine content cigarette products under the Smoker Friendly VLN brand, marking the first VLN partner brand. This collaboration enhances their longstanding relationship and features both Smoker Friendly VLN and 22nd Century VLN products, including gold and menthol SKUs. The companies are currently seeking state approvals and expect to begin shipping these products in the second quarter of 2025. Larry Firestone, CEO of 22nd Century, and Terry Gallagher, CEO of Smoker Friendly, expressed excitement about this expansion, highlighting its potential to influence the market and improve consumer choices regarding nicotine consumption. Smoker Friendly operates 344 stores across 13 states and aims to diversify its product offerings with this new collaboration.
Potential Positives
- 22nd Century has successfully established a partnership with Smoker Friendly to launch VLN branded reduced nicotine content products, marking a significant expansion of their product lineup.
- The introduction of VLN products in Smoker Friendly stores represents a groundbreaking step in market penetration for reduced nicotine cigarettes, enhancing brand visibility and consumer choice.
- This agreement builds upon a long-standing relationship of over 10 years, demonstrating strong customer loyalty and trust in 22nd Century's products.
- The rollout of these products is expected to begin in the second quarter of 2025, indicating proactive steps towards growth and innovation in the tobacco market.
Potential Negatives
- The press release emphasizes the need for state approvals before the new products can be launched, indicating potential regulatory delays that could impact market entry.
- There is a significant reliance on Smoker Friendly as a major customer, which raises concerns about potential vulnerabilities should their relationship change or if Smoker Friendly's performance declines.
- The focus on reduced nicotine products, while innovative, may not resonate with all traditional smokers, posing a risk that these products might not achieve expected sales volumes.
FAQ
What are the new products launched by Smoker Friendly?
Smoker Friendly has added VLN branded reduced nicotine content cigarette products and 22nd Century's VLN products to its offerings.
When will the new VLN products be available?
The VLN products are expected to start shipping in the second quarter of 2025, pending state approvals.
What does VLN stand for in the tobacco industry?
VLN stands for reduced nicotine content cigarettes designed to help smokers control their nicotine consumption.
How long has Smoker Friendly partnered with 22nd Century?
The companies have maintained a partnership for over 10 years, enhancing their product collaboration.
What is the significance of the VLN product launch?
The VLN product launch is a foundational step towards advancing reduced nicotine options in the market.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$XXII Insider Trading Activity
$XXII insiders have traded $XXII stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $XXII stock by insiders over the last 6 months:
- LAWRENCE FIRESTONE (Chief Executive Officer) purchased 39,000 shares for an estimated $10,467
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$XXII Hedge Fund Activity
We have seen 6 institutional investors add shares of $XXII stock to their portfolio, and 36 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ANSON FUNDS MANAGEMENT LP added 49,558 shares (+inf%) to their portfolio in Q4 2024, for an estimated $263,152
- GEODE CAPITAL MANAGEMENT, LLC removed 48,043 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $255,108
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- VIRTU FINANCIAL LLC removed 32,547 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $172,824
- CERITY PARTNERS LLC removed 21,500 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $114,164
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- VANGUARD GROUP INC removed 13,096 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $69,539
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Full Release
Smoker Friendly Adds Both VLN and Smoker Friendly Branded VLN Reduced Nicotine Content Products to its Store Lineup
MOCKSVILLE, N.C., March 10, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine by offering smokers a choice about their nicotine consumption, today announced that it has signed an agreement with Smoker Friendly, one of its largest customers, to launch Smoker Friendly VLN branded reduced nicotine content cigarette products that will become the first VLN partner brand.
The introduction of Smoker Friendly VLN and 22nd Century VLN in Smoker Friendly outlets will be one of the first presentations of gold and menthol SKU’s that introduce the new VLN branding.
The addition of Smoker Friendly branded VLN and 22nd Century Group’s VLN products builds on a customer relationship of over 10 years, as does the recent addition of the Smoker Friendly Black Label style cigarette. The Companies are currently obtaining state approvals for these products and expect to begin shipping in the second quarter of 2025.
Larry Firestone, Chief Executive Officer of 22nd Century, said, “We are very excited to have Smoker Friendly adopt our first VLN partner brand and also add our newly rebranded VLN products to the Smoker Friendly product offerings in their stores. This is a foundational building block to advancing VLN in the market, and will be a staged rollout as we garner state approvals. Equally important to expanding distribution will be measuring rate of sale once VLN is on the shelf.”
Terry Gallagher, President and Chief Executive, Smoker Friendly said, “We are excited to expand our relationship and product portfolio to include the VLN lineup under our brand as well as the updated 22nd Century VLN brand products. This is an important step for the future of our partnership.”
About The Cigarette Store LLC dba Smoker Friendly
Boulder, Colorado based Smoker Friendly operates 344 stores in 13 states. The stores are a mix of tobacco stores, cigar lounges, liquor stores, and fueling locations under the names Smoker Friendly, Tobacco Depot, Smoke ‘N Go, Havana Manor, and Gasamat.
The Smoker Friendly team also manages the Smoker Friendly Authorized Dealer program. This program provides a total tobacco private label portfolio, industry expertise, a well-known name, and geographic exclusivity to tobacco retailers desiring an alternative to the contracts offered by big tobacco.
About 22nd Century Group, Inc.
22nd Century Group is the pioneering nicotine harm reduction company in the tobacco industry enabling smokers to take control of their nicotine consumption.
We created our flagship product, the VLN ® cigarette, to give traditional cigarette smokers an authentic and familiar alternative that helps them take control of their nicotine consumption . VLN ® cigarettes have 95% less nicotine than the traditional cigarette and have been proven to greatly reduce nicotine consumption. Instead of offering new ways of delivering nicotine to addicted smokers, we offer smokers the option to take control of their nicotine consumption and make informed and more productive choices, including the choice to avoid addictive levels of nicotine altogether.
Our wholly owned subsidiaries include a leading cigarette manufacturer that produces all VLN ® products and provides turnkey contract manufacturing for other tobacco brands both domestically and internationally. The 60,000 square foot facility in Mocksville, North Carolina has the capacity to produce more than 45 million cartons of combustible tobacco products annually with additional space for expansion.
Our proprietary reduced nicotine tobacco blends are made possible by comprehensive and patented technologies that regulate nicotine biosynthesis activities in the tobacco plant, resulting in full flavor and high yield with 95% less nicotine. Our extensive patent portfolio has been developed to ensure we have the only low nicotine combustible cigarette in the United States and critical international markets.
VLN ® is a registered trademark of 22nd Century Limited LLC.
Learn more at xxiicentury.com , on X (formerly Twitter) , on LinkedIn , and on YouTube .
Learn more about VLN ® at tryvln.com .
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including but not limited to our full year business outlook. Forward-looking statements typically contain terms such as “anticipate,” “believe,” “consider,” “continue,” “could,” “estimate,” “expect,” “explore,” “foresee,” “goal,” “guidance,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “preliminary,” “probable,” “project,” “promising,” “seek,” “should,” “will,” “would,” and similar expressions. Forward-looking statements include, but are not limited to, statements regarding (i) our cost reduction initiatives, (ii) our expectations regarding regulatory enforcement, including our ability to receive an exemption from new regulations, (iii) our financial and operating performance and (iv) our expectations for our business interruption insurance claim. Actual results might differ materially from those explicit or implicit in forward-looking statements. Important factors that could cause actual results to differ materially are set forth in “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 28, 2024, and in the Company’s Quarterly Reports filed on May 15, 2024, August 13, 2024, and November 11, 2024. All information provided in this release is as of the date hereof, and the Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.
Investor Relations & Media Contact
Matt Kreps
Investor Relations
22nd Century Group
[email protected]
214-597-8200