March 2026: Alberta Urges Federal Government to Ease Nicotine Pouch Restrictions Amid Black Market Concerns
Alberta’s provincial government has formally urged Canada’s federal authorities to reconsider strict national rules governing nicotine pouches, arguing that the current framework is counterproductive and contributes to the growth of an unregulated market. In a letter to Ottawa, provincial officials criticized the policy that restricts nicotine pouches – tobacco-free oral products – to behind-the-counter sales in pharmacies, with only one brand (ZONNIC) authorized for sale by Health Canada. The province maintains that this approach is inconsistent with the treatment of other age-restricted nicotine products, which remain available in general retail outlets, and contends that broader access could better support adult smokers seeking alternatives while curbing illicit trade.
The disagreement highlights ongoing tensions in Canadian nicotine regulation, as policymakers attempt to balance youth protection with harm-reduction strategies for adults. The federal restrictions, introduced in 2024, were partly motivated by concerns about rising youth interest in nicotine pouches, influenced by trends observed in the United States. Alberta argues that limiting legal retail channels may inadvertently push demand toward unauthorized sellers, potentially undermining public health objectives. The federal government has yet to formally respond to the province’s request.
December 2025: ZONNIC-owner urges the authorities to act on the illicit nicotine pouches
ZONNIC-owner, British American Tobacco (BAT)’s Canadian affliate Imperial Tobacco Canada (ITCAN), urges federal decision-makers to take immediate action to address the rapidly growing illicit market for nicotine pouches in Canada, following an investigation that exposed widespread illegal sales in certain stores and online. ITCAN states that the Ministerial Order forcing legal nicotine pouches behind pharmacy counters has failed to protect the youth and accelerated the spread of unregulated, sub-standard products sold without any age-verification.
ITCAN stresses that addressing the illegal pouch market requires stronger enforcement, including proactive retail inspections and dedicated compliance resources. Moreover, to meaningfully cut off demand for illegal products, ITCAN urges the government to allow approved Health Canada authorized nicotine pouches (ZONNIC only) to be sold where adult smokers already shop, such as convenience stores and gas stations, ensuring regulated, Health Canada authorized options are accessible.
ZONNIC is the first and only legal nicotine pouch authorized for sale by Health Canada as a smoking-cessation product. It must not exceed 4mg of nicotine and must meet strict regulatory standards for quality, packaging, ingredients, labelling, and responsible access. In contrast, according to ITCAN, illegal nicotine pouches, including those with flavours appealing to youth and high-nicotine products, are not approved for sale in Canada, lack quality controls, often fail to disclose ingredients and are sold without age verification.
October 2025: Nicotine pouches are almost as popular as cigarettes among youth in Canada
According to a study conducted among more than 11,000 students (age 11-17) in Quebec, 13% of the students had used e-cigarettes in the previous month, compared to 3% for cigarettes and 2.6% for nicotine pouches1. Nicotine product use increases with age; secondary 5 students are three times more likely to use a nicotine product than secondary 1-3 students. Among respondents, 28% of pouch users also smoke cigarettes and 72% vape.
In Canada, nicotine pouches are approved for sale under Natural Health Product Regulations as a Nicotine Replacement Therapy (NRT) for adults who wish to quit smoking or need to temporarily refrain from smoking. Nicotine pouches can be sold only in pharmacies, behind the counter. As a Schedule 2 product, pharmacist intervention is required prior to purchase. Legal nicotine pouches, sold under the brand name ZONNIC, contain 4 mg nicotine per pouch and come in mint flavors (i.e. Classic Mint, Spearmint, Peppermint). Meanwhile, illicit nicotine pouches are widely available in the market, contain up to 50 mg nicotine per pouch and come in a wide range of flavors.
Researchers note that legal measures have limited impact in terms of preventing the youth from buying nicotine pouches and education is key to combating its adoption among the youth.
September 2025: Illegal nicotine pouches are on the rise in Canada
British American Tobacco (BAT)’s Canadian affliate, Imperial Tobacco Canada (ITCAN), stated that nearly 30% of cigarettes and 20% of vaping products sold in Canada are illicit. According to ITCAN, illegal and unregulated nicotine pouches are also spreading rapidly, filling the void left by the removal of ZONNIC, Canada’s first ever Health Canada approved nicotine pouch product, from the convenience stores. ITCAN underlines that illegal nicotine pouches are sold on the street, online, and on social media, with no reguatory oversight and no proof-of-age checks2.
April 2025: A Conservative government would end pharmacy only rule for Zonnic nicotine pouches
A Conservative Government would allow nicotine pouches to be sold at convenience stores and gas stations, scrapping the pharmacy-only sales limitation introduced by the Liberal Government. “Conservatives believe adult Canadians should have freedom of choice when it comes to what legal products they use, including vapes and nicotine pouches,” stated a party spokesperson3.
So far, Health Canada has licenced only one nicotine pouch as a quit smoking aid: Zonnic, marketed by British American Tobacco (BAT)’s Canadian affliate Imperial Tobacco Canada (ITCAN). In August 2024, the Liberal Government invoked the Food and Drugs Act to restrict the nicotine pouch sales to pharmacies only.
October 2024: Convenience store operators demand the Federal Court to overturn Health Canada’s nicotine pouch rules
In an application to the Federal Court, Alimentation Couche-Tard Inc.’s two Canadian subsidiaries claim that Health Canada’s rules restricting the sale of nicotine pouches to pharmacies are unfair and unconstitutional4. Quebec-based Couche-Tard, which operates 16,700 convenience stores in more than 30 countries, demands the rules to be overturned.
Meanwhile, in its own application, Parkland Corp., an Alberta-based energy and retail company operating gas station convenience stores under the On the Run brand, claims that the pharmacy-only sales limitation will increase the demand for illegal products to which youth readily have access. Parkland also notes that illegal nicotine replacement therapy products are more dangerous than regulated products, and the rules will have the effect of increasing – not decreasing – the health risk. The application of Couche-Tard subsidiaries makes a similar argument about the illicit market and increasing health risk for the users.
Health Canada declined to make a comment due to “the complexity of the file”. Imperial Tobacco – part of BAT Group and the owner of the Zonnic pouches, the only nicotine pouch product that has been approved for sale by Health Canada – calls the Health Canada’s measures “unprecedented” and “an extreme abuse of power”.
October 2024: The Conservative Party voices out opposition against limiting nicotine pouch sales to pharmacies only
The federal-level measures, which took effect in late-August, limited the nicotine pouch distribution to pharmacies only and banned flavors other than mint or menthol. Currently, only select pharmacies have nicotine pouches in stock which creates difficulties for some users to find the product (- see below for further details). For instance, Rexall Canada, a chain of pharmacies with close to 400 locations, recently stated that they are in the process of ordering nicotine pouches and will make them available soon.
The Opposition, Conservative Party of Canada, disputes the federal-level measures, based on the premise that while the nicotine pouches should be kept out of the hands of youth, they believe in freedom of choice for adults when it comes to legal products (including the Health Canada-approved Zonnic nicotine pouches)5. Moreover, the Party spokesperson underlined the importance of offering access to less harmful alternatives for those who try to quit smoking.
Similar to the US, nicotine pouches are increasingly becoming a matter of political debate in Canada. Nevertheless, it is not confirmed whether permitting nicotine pouch sales in convenience stores would be in the agenda of a future Conservative government.
September 2024: Nicotine pouch shortage in Canada
On August 28, the Federal Government restricted the sale of nicotine pouches to only behind the counter in pharmacies and banned flavours other than mint or menthol. New rules that prevent convenience stores from selling nicotine pouches have caused widespread nicotine pouch shortage across Canada.
Consumers that are used to visit Circle K stores to buy nicotine pouches (ZONNIC as a genericized trademark or zonnics in colloquial language) are now returning empty handed. Moreover, most pharmacies do not have the product in stock yet and some pharmacies are planning not to list the product at all. The new rules are especially troubling for those who do not live near pharmacies that carry them. In some places, smokers have to drive for hours to find a pharmacy that sells them – in extreme cases, the nearest ZONNIC-selling pharmacy could be 12-hour drive away6. The lack of access is especially an issue in smaller cities and rural areas.
Number of pharmacies currently carrying ZONNIC nicotine pouches
The ZONNIC website has a store locator tool to help find places that sell nicotine pouches: https://www.zonnic.ca/ca/en/store-locator. Imperial Tobacco Canada (ITCAN, part of BAT group) is aiming to get the product into more pharmacies and notes that new locations are added to the store locator database on a weekly basis. Major pharmacy chains like Shoppers Drug Mart, Rexall, and Jean Coutu are likely to carry ZONNIC across Canada. The expanded distribution will ease the access for most Canadians, especially for those in cities, but the problem will persist for sparsely populated areas.
Bottomline: As a result of sudden regulatory change without proper transition planning, it is becoming increasingly inconvenient for the users to find nicotine pouches in Canada. It’s unclear when or if the legal supply of nicotine pouches will improve. However, it is clear that the new market reality (“unsupplied demand”) is an open invitation for a rampant illicit market: “demand creates its own supply”, especially in lucrative businesses.
August 2024: New Federal-level Measures
Health Canada introduces new measures for Nicotine Replacement Therapies (NRTs) through a Ministerial Order to reduce the appeal of, access to, and use of these products by minors (i.e anyone under the age of 18 at the federal level and under the age of 19 to 21 in some provinces) for recreational purposes and to ensure that access to these products is restricted to adults who use these products as a quit smoking aid7. Introduced measures mainly target nicotine pouches and, specifically, Imperial Tobacco’s (ITCAN, part of BAT group) ZONNIC product.
The Order introduces new measures that will:
– Require NRTs in new and emerging formats, such as nicotine pouches, to be sold only by a pharmacist or an individual working under the supervision of a pharmacist, and to be kept behind the pharmacy counter (effective August 28, 2024)
– Prohibit NRTs in new and emerging formats, such as nicotine pouches, from being sold with flavors other than mint or menthol (i.e. nicotine pouches with other flavors, such as berry frost or tropical breeze, will be recalled)
– Prohibit advertising or promotion, including labeling and packaging, for all NRTs that could be appealing to minors
– Require a front of package nicotine addiction warning, as well as a clear indication of the intended use as a smoking cessation aid for adults for all NRTs
– Require manufacturers to submit mock-ups of labels and packages for all new or amended NRT licenses to ensure no youth appeal.
During the 6-month transition period, manufacturers will have to modify their packaging to include nicotine addiction warnings and to eliminate children-appealing design elements. Smoking cessation aids with “an established history of appropriate use”, such as nicotine gums, lozenges, sprays and inhalers, will continue to be available in a wide range of retail locations and with a variety of flavors.
Health Canada approved ZONNIC product as a smoking cessation aid in July 2023. However, as a “new & emerging” NRT, no restrictions existed on the sale of nicotine pouches. ITCAN voluntarily placed ZONNIC behind counter in retailers to make it harder for the minors to access. Nevertheless, MoH stated that nicotine pouches are marketed on a lifestyle basis (rather than as an aid to “quit smoking”) and in a way different than they were approved for – which resulted in them being increasingly used by the non-smokers and minors. ITCAN accused MoH of unfair treatment of a highly regulated (Health Canada-approved) product while neglecting illicit nicotine pouches that can be easily purchased online.
June 2024: ZYN Recall
The Government of Canada issued a recall for ZYN nicotine pouches, stating that the product is sold without market authorization8. The recall affects 8 product variants with a range of flavors, including Apple Mint, Black Cherry, Citrus, Cool Mint, Original, Espresso, Spearmint, and Bellini (an Italian cocktail made with Prosecco and purée of peach or nectar). All the products, except Spearmint (1.5mg), contain 3mg of nicotine. The depth of recall extends the retailers only.
Recall that nicotine pouches (<4mg nicotine) are classified as “Natural and Non-prescription Health Product” in Canada and are marketed upon receiving a market authorization from Health Canada. ZONNIC, the first nicotine pouch to be authorized and launched in Canada, has caused social and regulatory backlash since its launch in Q4 2023 by Imperial Tobacco Canada (part of BAT group).
March 2024: MoH Statement
Ministry of Health (MoH) issued a statement on the growing popularity and recreational use of nicotine pouches (marketed as nicotine replacement therapies)1 while noting that companies, misleading consumers about the purpose of these products and/or marketing them toward youth and non-smokers, will face the consequences.
Health Canada is currently pursuing legislative and regulatory mechanisms to put in place safeguards to address youth access and appeal, including restrictions on advertising, flavours and place of sale. MoH also commended the steps taken in British Columbia and Quebec, requiring nicotine pouches be sold only in pharmacies.
February 2024: Provincial Measures
British Columbia (Canada) restricts the sale of flavored nicotine pouches to pharmacies (effective immediately) in order to prevent the underage access across the province. The new regulation will require all buccal nicotine pouch products to be placed behind the counter at pharmacies. No prescription will be required, but purchasers will need to request the product from a pharmacist. The products will no longer be available for sale in convenience stores.
Launch of ZONNIC as a “Natural and Non-prescription Health Product” (i.e. smoking cessation aid) by Imperial Tobacco (ITCAN, part of BAT group) caused controversy in Canada and the Canadian anti-smoking advocates called on the federal government to restrict the sale of ZONNIC.
We expect the other Canadian provinces and, eventually, the Federal Government, to follow course and introduce restrictions on the distribution & marketing of nicotine pouches.
December 2023: MoH Statement
“There are very serious questions about what the tobacco industry is doing here and what their [disgusting] intention is”, said the Canada’s health minister and vowed to close the loophole on flavored nicotine pouches2. “Defaming a legal company about a product that was recently authorized for sale by his ministry is not worthy of a Canadian Health minister – even one whose background is as an anti-tobacco lobbyist”, responded ZONNIC-owner Imperial Tobacco Canada (ITCAN, part of BAT group).
In October 2023, Health Canada approved ZONNIC as a smoking cessation therapy (“Natural and Non-prescription Health Product”). Under the current regulatory scheme, there is no legal restriction on where and to whom these products can be sold and how they can be advertised. Only Quebec requires that they are sold at pharmacies. Canadian anti-smoking advocates are calling on the federal government to restrict the sale of ZONNIC and seeking a moratorium on approval for any other nicotine pouches, unless they are made available only by prescription.
Health Canada requires ITCAN to self-report annually and identify any youth appeal/misuse of the product. “Marketing directed at youth would be deemed deceptive advertising and could trigger post-market compliance actions. However, decisions about where the products can be sold and age limits on purchase rest with the provinces and territories”, said Health Canada in a statement.
November 2023: Social Backlash
Canadian anti-smoking advocates are calling on the federal government to restrict the sale of ZONNIC9 (recently approved by Health Canada) and seeking a moratorium on approval for any other nicotine pouches, unless they are made available only by prescription. The groups claim that
– while ZONNIC is marketed as a “nicotine replacement therapy” for adults, it is available for sale at convenience stores and gas stations with no legal restrictions on who can buy it
– ZONNIC’s social-media posts feature images of young people and highlight the product’s (youth appealing) flavors such as berry frost and tropic breeze.
In response, Imperial Tobacco Canada (part of BAT group) issued a statement10 noting that
– Despite the criticism from health groups, they believe that ZONNIC will help adult Canadians smokers quit and they support support regulations that limit the sale NRT category to adults 18 years old and over
– ZONNIC is licensed, regulated and advertised in the same way as any other smoking cessation product on the market
– There should be no reason why they should be singled out for adding another innovative choice to the market to help adult smokers quit.
Is this the best strategy for BAT to follow? In Canada, nicotine pouches (<4mg nicotine) are classified as “Natural and Non-prescription Health Product” and are marketed upon receiving a market authorization from Health Canada. BAT is using this rightful commercialization pathway to place ZONNIC on the market. Meanwhile, the regulatory status of nicotine pouches are unclear in many countries around the world and, in many cases, they are de-facto classified as consumer product – only subject to general product safety rules. Many countries (especially, the EU and EU states) are going through the process of deciding on the regulatory status of this emerging nicotine product category. Shifting the attention to Canada and putting the “Pharmaceutical/NRT” pathway as a viable/effective option to reach the intended audience (“smokers who want to stop smoking”) may not be in the best interest of tobacco companies at this stage. It won’t be easy to sell the idea that ZONNIC and VELO are different products based on the approval process and product placement/claims. If EU and other developed markets classify nicotine pouches as NRTs (limiting the distribution channels and access to the product, except for a handful of markets), we will slash the category’s global market potential for the tobacco companies by half (- the rest will mostly be the US, Scandinavia and UK).
Food for thought: maybe BAT is better off by being singled out from the Canadian NRT market until the regulatory status of nicotine pouches are clarified in key jurisdictions.
October 2023: ZONNIC Launch
Imperial Tobacco Canada (ITCAN), part of BAT group, will launch ZONNIC nicotine pouch as a smoking cessation product11 following the “license to sell” granted to BAT’s subsidiary, Nicoventures, by Health Canada. ZONNIC is the first nicotine pouch to receive Health Canada’s authorization. The licence application made to Health Canada included a pharmacokinetics study that assessed the bio-availability of nicotine in ZONNIC in comparison to other commercially available NRTs.
Niconovum, which sells own NRT products under the ZONNIC brand name in Nordics and also manufactures private-label NRT products, was acquired by Reynolds American (RAI) in 2009. Following the acquisition of RAI by BAT in 2017, Niconovum was brought under the umbrella of Nicoventures – a standalone company established by BAT in 2011 to exclusively focus on the development and commercialization of regulatory-approved, innovative nicotine products.
References:
- https://www.ctvnews.ca/montreal/article/researchers-concerned-about-young-peoples-use-of-nicotine-pouches ↩︎
- https://tobaccoinsider.com/wp-content/uploads/2025/04/Imperial-Tobacco-Canada-Written-Submissions-on-the-Third-Legislative-Review-of-the-TVPA.pdf ↩︎
- https://www.westernstandard.news/canadian/conservatives-to-end-pharmacy-only-rule-for-nicotine-pouches-freedom-of-choice/64318 ↩︎
- https://www.thestar.com/business/couche-tard-on-the-run-parent-firms-challenge-health-canada-nicotine-pouch-rules/article_8002aa84-7c27-5297-9914-108351a95873.html ↩︎
- https://nationalpost.com/news/canada/conservatives-oppose-ban-nicotine-pouches ↩︎
- https://www.westernstandard.news/canadian/smokers-forced-to-drive-hours-to-find-pharmacies-with-nicotine-pouches/57895 ↩︎
- https://www.canada.ca/en/health-canada/news/2024/08/health-canada-introduces-new-measures-to-help-prevent-harms-to-youth-from-nicotine-replacement-therapies.html ↩︎
- https://recalls-rappels.canada.ca/en/alert-recall/zyn-nicotine-pouches-15-3mg-no-market-authorization ↩︎
- Health Canada-approved Zonnic flavoured nicotine pouches target teens, say health experts – The Globe and Mail ↩︎
- Imperial_Tobacco_Canada_stands_by_ZONNIC_as_a_tobacco_harm_reduction_tool.pdf (imperialtobaccocanada.com) ↩︎
- Imperial Tobacco Canada: Zonnic Launch ↩︎
