Dive Brief:
- Reynolds American expects to add about 300 jobs in the U.S. in 2025, with a majority of those focused on its Velo Plus oral smokeless nicotine pouches, according to a statement from the tobacco company.
- Many of the jobs will help increase Velo Plus production at the 2-million-square-foot Reynolds Operations Center in Tobaccoville, North Carolina, near Winston-Salem.
- Fellow tobacco company Philip Morris invested almost $250 million into expanding production of its own Zyn brand nicotine pouches in August 2024 as consumer tastes shift away from cigarettes.
Dive Insight:
As interest in cigarettes fades, the modern oral category — which includes nicotine pouches — has been steadily growing. Sales increased over 50% in 2023 and grew another 50%-60% in 2024. A recent Goldman Sachs report noted that nicotine pouch sales are expected to grow at a compound annual rate of 13.5% through 2035.
Philip Morris ramped up production of Zyn last year after demand for the smokeless products, which are placed between the lips and gums, grew so much that parts of the U.S. experienced supply shortages.
Reynolds may be looking to avoid that issue with Velo Plus, which launched in December 2024, according to reporting from Tobacco Insider. Velo Plus has only been on the market for a few months, but sales so far have been “encouraging,” according to Goldman Sachs.
Reynolds American, a member of the British American Tobacco Group, has been shifting away from combustible tobacco products as tastes change. In 2024, the company made nearly 20% of its revenue from smokeless products like Vuse and Sensa vapes in addition to the Velo nicotine pouches. The company began producing Velo Plus at its Tobaccoville in the fall of 2024, Reynolds said in the statement.
“The Reynolds organization hired for over 500 jobs in 2024, the majority of which were directly related to our expanding smokeless portfolio, mainly Velo Plus,” said Borgia Walker, senior vice president of human resources and inclusion at Reynolds American. Hiring for the 300 roles this year is ongoing.
