New "tobacco-free alternatives" in the sights of certain European countries

Some European countries are considering introducing stricter rules to regulate new tobacco-free sticks for use with heated tobacco devices from Philip Morris and British American Tobacco.[1]The two manufacturers announced the launch of the sticks, made from nicotine-infused substances such as rooibos tea, late last year in a bid to counter the European Union's ban on flavoured heated tobacco products.

These products will be included in the new Tobacco Products Directive, which is due for revision. Some countries where these products are becoming increasingly popular are now seeking to take action to regulate them in the same way as tobacco products.

Products designed to circumvent current regulations

Philip Morris has developed a range of sticks, called LEVIA, which do not contain tobacco but a "tobacco-free substrate" infused with nicotine and available in several flavours. British American Tobacco's products are made from nicotine-infused substances such as rooibos tea. In October 2023[2], both manufacturers had said the products were launched to counter the EU ban on certain flavours for heated tobacco. Philip Morris Chief Executive Jacek Olczak told investors in a presentation that the new LEVIA product could avoid high taxation and various requirements imposed on the manufacturer's other tobacco products. LEVIA " will not be subject to the same flavor regulations in some jurisdictions (European Union) » and « does not match » to existing tax categories.

Products increasingly popular in some countries

Several European governments, including Latvia, Lithuania, Germany, Croatia, Belgium and Slovenia, are already considering introducing stricter regulations to control these products. In Latvia, a draft law would classify these tobacco-free sticks as tobacco substitutes and subject them to corresponding regulations, while banning all flavours except tobacco from 2025, a Health Ministry spokesperson said.

German authorities, meanwhile, are in discussions with some manufacturers about whether existing tobacco tax laws cover the new products, according to a spokesman for the federal customs authority. Belgium and Slovenia want to introduce specific taxes for these products.

Non-tobacco sticks represent a tiny fraction of tobacco companies’ revenues, which still come overwhelmingly from manufactured cigarettes. But they marked a significant strategic development that companies have presented to investors as examples of innovation that can help them grow amid increasingly stringent regulations on their other products. In some markets, the sticks have grown rapidly. In the Czech Republic and Romania, they already accounted for half of all sticks sold for BAT’s heated tobacco device as of December 2023, with the figure rising to 30 % in Germany and 19 % in Greece. BAT plans to roll out the sticks globally soon.

Keywords: Philip Morris, British American Tobacco, Levia, alternatives, heated tea, nicotine, Europe

©Generation Without Tobacco

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[1] Emma Rumney, European regulators close in on Big Tobacco's new tea sticks, Reuters, published March 28, 2024

[2] Tobacco-free generation, Tobacco Industry Circumvents Heated Tobacco Regulations with Tobacco-Free Refills, published October 25, 2023, accessed April 2, 2024