22nd Century and Smoker Friendly Expand Partnership for Growth

Strategic Partnership Between 22nd Century Group and Smoker Friendly

The agreement covers 11 brands and plans for additional premium products.

22nd Century Group, Inc. (NASDAQ: XXII), a leader in tobacco products and nicotine harm reduction, has finalized a significant new license and manufacturing agreement with Smoker Friendly, a prominent independent cigarette retailer in the U.S. This partnership includes 11 existing brands sold within Smoker Friendly's extensive network and introduces eight new premium brands, aiming to expand market opportunities.

Business Expansion and Product Development

This five-year agreement is not just an extension of their long-standing relationship, but a strategic move designed to fuel mutual growth. The brands currently represent substantial contract manufacturing volume for 22nd Century's North Carolina facility. The introduction of eight new premium products will tap into the natural segment, further broadening Smoker Friendly's customer base and market reach.

Reduced Nicotine Content Initiative

In addition to the premium brands, there are plans to introduce a reduced nicotine content brand that resonates with 22nd Century's VLN product line. This initiative, aimed at diversifying offerings, highlights the commitment to providing alternatives that allow consumers to manage their nicotine consumption.

According to Larry Firestone, CEO of 22nd Century Group, this agreement signifies a new era in their collaboration with Smoker Friendly, creating additional paths for business opportunities through their integrated services platform.

Utility and Impact of VLN Products

22nd Century’s flagship VLN cigarette is a groundbreaking approach to nicotine consumption, featuring 95% less nicotine than traditional cigarettes. This unique product has shown potential in reducing smoking activity among smokers, thus reinforcing the company’s mission to provide informative choices for nicotine consumption.

Manufacturing and Quality Assurance

The agreement also sets the stage for enhanced collaboration on manufacturing services, including integrating Smoker Friendly's filtered cigar business into their operations. The partnership is expected to not only boost the range of products available but also ensure quality through efficient manufacturing processes, leveraging 22nd Century's advanced technology.

Keelan Gallagher, VP of Operations at Smoker Friendly, expressed enthusiasm for the partnership, emphasizing how 22nd Century's capabilities meet the growing demand for additional product varieties and high-quality manufacturing solutions.

About 22nd Century Group, Inc.

As an innovator in nicotine harm reduction, 22nd Century Group provides smokers with an authentic alternative to manage and control their nicotine intake. Besides its successful VLN product line, the company operates a fully equipped manufacturing facility that produces a range of tobacco products, catering to both local and international markets.

The proprietary tobacco blends are developed using patented technologies, ensuring that they remain the only provider of low-nicotine combustible cigarettes in the nation and expanding into key international territories. With a capacity of over 45 million cartons annually, the facility in Mocksville, North Carolina, showcases the company’s commitment to scalable production while prioritizing health and responsibility.

About Smoker Friendly

Smoker Friendly operates under various brand names across multiple states, offering a diverse mix of retail settings, from tobacco stores to cigar lounges. Their authorized dealer program provides unique benefits to retailers looking for alternatives to conventionally structured contracts in the tobacco industry.

Frequently Asked Questions

What does the new agreement between 22nd Century and Smoker Friendly entail?

The agreement includes 11 existing brands and introduces eight new premium products, enhancing both companies' market presence.

How does 22nd Century's VLN cigarette differ from traditional cigarettes?

VLN cigarettes contain 95% less nicotine, providing a lower-risk alternative for smokers seeking to reduce nicotine intake.

What are the future plans regarding nicotine content products?

There are intentions to introduce additional reduced nicotine content products as part of an expanding product line under the new agreement.

Where is 22nd Century's manufacturing facility located?

The facility is located in Mocksville, North Carolina, with the capacity to produce over 45 million cartons of tobacco products annually.

What are the benefits of the Smoker Friendly Authorized Dealer program?

The program offers private label opportunities, expertise, and exclusivity, aiming to support retailers against larger tobacco companies.

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