STG enters next-gen nicotine category

Scandinavian Tobacco Group UK (STG) is entering the next-gen nicotine category in the UK with the launch of XQS nicotine pouches.

The new range will be available to wholesalers from May onwards in four varieties, each with a different nicotine strength and an RRP of £5.50 for a can with 20 pouches.

These are Tropical, Blueberry Mint (both 8mg), Cool Ice (9.6mg) and Arctic Freeze (11.2mg). According to the supplier, XQS pouches are smaller than competitors to fit more comfortably in adult users’ mouths, while still releasing a long-lasting burst. They also come in fully recyclable packaging.

STG acquired the Swedish brand last year as part of its plans to enter the next-gen category. It is currently the fastest-growing nicotine pouch brand in Sweden, having more than doubled its market share and become a top-five brand in the country since the acquisition.

Read more: STG releases limited edition packages for 60th Signature anniversary

The supplier plans to showcase the brand at various trade shows, including the National Convenience Show from 29 April to 1 May and the Bestway Retail Showcase on 15 May, alongside a trade marketing campaign. It has also increased its field sales team from eight to 30 to help drive uptake in convenience.

It will also launch a consumer-focused campaign on social media and with presence at major UK cities and summer festivals.

STG’s UK managing director Gleb Pugacev said: “Nicotine pouch sales in the UK are really gathering pace now, and much of that growth is being driven by flavour. XQS is genuinely bringing something different to the nicotine pouch market with a smaller size and longer-lasting flavour, all for a lower price.”

In 2023, nicotine pouch sales in the UK accounted for 10% of global pouch revenue, and the country is now the third-largest European market for the category behind Sweden and Denmark, according to Pugacev.

STG had previously trialled its own nicotine pouch brand Ström in Manchester between October 2022 and March 2023, selling around 5,500 cans across 250 participating convenience stores.

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Paul Hill is the Editor of Better Wholesaling. He can be found on Twitter at @BW_PaulHill, or contacted via paul.hill@newtrade.co.uk and 07960935659.

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