British American Tobacco (BTI) Suspends U.S. Vape Rollout Following Regulatory Pressure

Core Insights - British American Tobacco (BTI) has suspended its U.S. vape rollout due to regulatory pressure from the FDA [2][3] - The suspension highlights the challenges faced by major tobacco companies in a market increasingly affected by unregulated products [3][4] - The U.S. market for smoking alternatives is valued at $22 billion, indicating significant competition and profit erosion [3] Regulatory Challenges - The FDA has intensified efforts to regulate unlicensed products, prompting BTI to halt its pilot program for the Vuse One vape [2][3] - The decision to pause the pilot was made by Reynolds American, BTI's U.S. arm, which had previously planned to launch the product without FDA authorization [3][4] Market Context - The initiative to introduce the unlicensed vape was seen as a significant shift in BTI's engagement with FDA regulations, attracting attention from various stakeholders [4] - The competition from unregulated products, particularly those imported from China, poses a threat to established tobacco companies [3]