Imperial Brands Exits U.S. Vaping Market Amid Regulatory Delays
U.K. tobacco giant Imperial Brands has confirmed the withdrawal of its myblu vaping business from the U.S. market. Driven by a drawn-out regulatory approval process, the company is now pivoting its American strategy toward modern oral products like Zone.
In its fiscal half-year results released Tuesday, the maker of Davidoff and Gauloises cited the “protracted regulatory process to approve new innovations” as the primary catalyst for abandoning its legacy U.S. vape operations.
To compensate for the exit, Imperial Brands is aggressively promoting its Zone oral nicotine pouches, recently rolling out new flavors. However, heavy one-off promotional activities for Zone contributed to lower year-over-year net revenue in the region.
This strategic retreat occurs against a turbulent regulatory backdrop. The White House has reportedly pressured FDA Commissioner Marty Makary to approve more vape flavors. According to reports, President Trump has even signed off on a plan to dismiss Makary following clashes over vaping and drug policies.
| Financial Metric (Six Months Ended March 31) | Current Year | Previous Year |
|---|---|---|
| Overall Revenue | £14.72 billion ($20.04B) | £14.60 billion |
| Pretax Profit | £791 million | £1.30 billion |
| NGP Revenue (Americas) | £12 million | £24 million (Halved) |
While overall global revenue increased, Imperial’s pretax profits took a significant hit. Administrative and other expenses more than doubled—rising from £476 million to £1.04 billion—driven by a review of the company’s 2030 strategy and the settlement of ongoing legal cases.
Globally, net revenue for next-generation products (including vapes and oral pouches) still grew by 7.5%, as strong double-digit growth in multiple international markets offset the sharp decline in U.S. sales.
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