Imperial Brands: Business Update

Share on facebook
Share on twitter
Share on email
Share on whatsapp
Share on linkedin

Imperial acquires a range of 14 nicotine pouch variants from TJP Labs in order to facilitate its entry into the US modern oral market1

–  TJP pouches (claimed to) perform strongly in consumer testing

– £65Mn plus a deferred payment based on 5-year sales volumes

– Products to be re-launched in 2024 under a new brand

– TJP Labs will continue to manufacture the oral nicotine pouches under contract for ITG Brands

In Jan 2023, PMTA submission for TJP Labs’ L!X brand was accepted for review by the US FDA2.

The Imperial’s acquisition announcement doesn’t contains any further insights on the business case & the due diligence conducted:

(1) The rationale behind the strategy change: from “no interest in entering the US nicotine pouch market” to “paying £65Mn plus bonus for 14 nicotine pouch variants to facilitate the entry”

(2) The assessment of the probability of 14 TJP Labs pouches receiving (PMTA) marketing order

(3) The benefit of having TJP Labs products in addition to the Zone X & Skruf

(4) Projection of the US nicotine pouch market size in 2030, Imperial’s intended SoS and the investment needed to reach the aforementioned SoS (- is this investment accretive?)

References:

  1. https://www.imperialbrandsplc.com/media/key-announcements/2023/imperial-acquires-us-nicotine-pouches-range-from-tjp ↩︎
  2. https://tjplabs.com/tjp_labs_press_releases/fda-acceptance-for-premarket ↩︎

Call Request:
Reports

We will reach out to you within 24 hours to discuss your request. Please note that we only respond to requests with a valid business e-mail address
Disclaimer: The content in our Market Pulse section is/shall not be construed as investment advice. It is for informative purposes only and does not take into account the individual needs, investment objectives and specific financial circumstances. Any action taken upon the information in our Market Pulse section is strictly at the reader’s own risk. We assume no responsibility or liability for the actions taken. Moreover, we also assume no responsibility or liability for any errors or omissions in our content – which is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness or timeliness even if we only depend on the infromation sources that are believed to be accurate.

Consultation
Session Request

We will reach out to you within 24 hours to discuss your request. Please note that we only respond to requests with a valid business e-mail address