One Year Later: Ottawa's Nicotine Replacement Therapy Strategy Fuels Illicit Market, Underserves Smokers

MONTREAL, Aug. 19, 2025 /CNW/ - One year ago this week, the former federal government issued a Ministerial Order banning ZONNIC—the only nicotine pouch approved by Health Canada as a smoking cessation product—from convenience store shelves nationwide, restricting its sale to behind pharmacy counters.

The policy, presented as a public health measure, has clearly backfired. Overnight, access of ZONNIC immediately dropped. While sales of ZONNIC dropped, the purchase of cigarettes jumped by 2.8% and over the last year, more than 500 million illegal and unregulated pouches have been sold on the black market.

"The government targeted the only legal, regulated nicotine pouch product in the country, and opened the door to a thriving illicit market," said Eric Gagnon, Vice President of Corporate and Regulatory Affairs at Imperial Tobacco Canada (Imperial). "ZONNIC wasn't the problem. It was and is the solution for many Canadian smokers."

The consequences have been swift and concerning:

• Illicit sales have exploded. Unregulated pouches, many with significantly higher nicotine levels than the legal limit, are now flooding the market and e-commerce platforms, easily accessible to youth and adults alike.
• Smokers are left behind. In rural and remote regions, where pharmacies are few and far between, adult smokers who once relied on ZONNIC to quit now face unnecessary barriers.
• Pharmacists overburdened. Pharmacists play an integral part in many smokers quitting journey, but instead of spending time on crucial patient care, health professionals are now faced with additional, significantly higher unnecessary administrative burdens.

This policy has also dealt a blow to this country's small business economy, affecting many of Canada's 200,000 convenience retail jobs and threatening the small businesses that rely on regulated nicotine product sales to stay competitive.

Health Canada approved ZONNIC as a natural health product and cessation tool. CAMH recognized its value as a fast-acting NRT. It was widely available where adult smokers were already shopping, and it was working. In stores where ZONNIC was sold, cigarette sales dropped by double digits. That progress has now been slowed down.

Instead of protecting Canadians, the Order punished innovation, rewarded non-compliance, and made it more difficult and complicated for those trying to quit. ZONNIC remains the only nicotine pouch that meets national safety and quality standards — but access has been made more cumbersome for many Canadian smokers.

Imperial is aligned with Health Canada's ambition of achieving less than 5% smoking incidence by 2035. Yet, to achieve that, innovative cessation tools like ZONNIC need to be widely and seamlessly accessible at the front counter of pharmacies AND in places where smokers buy their cigarettes. "We are ready to find joint solutions with the Minister of Health so that the burden on the already over-stretched pharmacists can be reduced and especially to help as many adult smokers as possible to quit for good", said Eric Gagnon.

Canadians deserve better. They deserve public health policy rooted in evidence, one that helps them quit, not one that sets them back.

About Imperial Tobacco Canada

Imperial Tobacco Canada is the leading tobacco and nicotine company in Canada, part of the global BAT group. Our mission at BAT is to create A Better Tomorrow™ by promoting a Smokeless World. We envision a future where smokeless products replace cigarettes, encouraging smokers to make a Switch to Better.

Imperial is committed to advancing THR through transparency, innovation, and collaboration. One such initiative is Omni™, a platform developed by our parent company BAT, to support education and stakeholder engagement around THR. Omni™ serves as a dynamic resource for those working toward a smoke-free future.

SOURCE Imperial Tobacco Canada

For more information or interview requests, please contact: Mary Moniz, Torchia Communications, 647-278-0152, [email protected]; Dalia Esposito, Torchia Communications, 514 654-2635, [email protected]