22nd Century Group (XXII) Launching VLN at #1 U.S. C-Store Chain in Texas, California and Florida - Seite 2

Industry surveys indicate that 75% of smokers want to quit, and a majority of smokers try to quit each year, yet only a small percentage are successful. For smokers who are ready, VLN reduced nicotine content cigarettes have been shown to decrease consumption, decrease dependence and reduce toxicants, providing a much-needed tool for millions of adult smokers to reduce their reliance on nicotine and smoke less.

“We are excited to deliver on our commitment to launch with major C-store retailers and new national-scale distribution resources as we work to rapidly expand sales of our VLN products in up to 18 states by the end of 2023,” said James A. Mish, chief executive officer of 22nd Century Group. “VLN sales are accelerating as planned, keeping us on track to achieve cash positive operations in our tobacco business in 2024.”

Market Data and Additional VLN Background
22nd Century’s distribution agreements with the #1 and #2 U.S. C-Store products distributors, plus a growing list of regional distribution, provide solutions for convenience stores, mass merchants and drug stores seeking to carry the Company’s revolutionary VLN reduced nicotine content cigarettes.

Combined, Texas, California and Florida represent more than 1.7 billion packs per year of cigarettes smoked, according to Centers for Disease Control and Prevention estimates, generating retail sales in excess of $14.4 billion.

• Approximately 15% of Texans smoke, making it the largest cigarette market in the United States. Texas smokers consume an estimated 736 million packs per year, resulting in $5.6 billion in annual retail sales.
• Approximately 10% of Californians smoke, consuming an estimated 514 million packs per year, resulting in $4.9 billion in retail sales.
• Approximately 15% of Floridians smoke, consuming an estimated 513 million packs per year, resulting in $3.9 billion in retail sales.
  

22nd Century Group's VLN brand cigarettes are the first and only combustible cigarettes that the FDA has authorized as Modified Risk Tobacco Products (MRTP). The Company's VLN King and VLN Menthol King contain 95% less nicotine than traditional addictive cigarettes, a level considered to be minimally or non-addictive. Reduced nicotine content cigarettes, such as VLN, have been studied extensively by federal health agencies, documenting their ability to help smokers smoke less. To inform adult smokers of the product's distinctive purpose, the FDA requires 22nd Century to include the statement "Helps You Smoke Less" on every package of VLN sold.