Altria to Test Market New Nicotine Product in Virginia

The nation's largest tobacco company is planning to test market in Virginia a new and unusual smokeless consumer product containing nicotine but no tobacco. Altria Group Inc., the parent company of cigarette maker Philip Morris USA, announced Tuesday that the new product - a chewable, spit-free, oral product called Verve - will be available at 50 to 100 Sheetz convenience stores in Virginia starting in early June. Verve is the latest example of the tobacco industry's efforts to spark consumer interest in alternative, smoke-free products. The trend has developed as U.S. cigarette consumption slowly declines and as more states, local governments and businesses have banned indoor and public smoking. Even historically tobacco-friendly states such as Virginia and North Carolina have adopted laws banning smoking in most restaurants. "[Verve] was really designed for those adult smokers who are interested in smoke-free alternatives" to cigarettes, said David Sylvia, a spokesman for Henrico County-based Altria. "Our research shows that about 30 percent of adult smokers are interested in some sort of smokeless product." However, many of those smokers are uncomfortable with traditional, loose-leaf chewing tobacco or snuff, so Altria and other companies are designing products aimed at wider acceptance. "We are all aware of the clampdown on cigarette use and the decline (in consumption) that is going on in the country," said Jack Russo, a consumer staples analyst for Edward Jones & Co. "They are trying to find the next product where they can perhaps grow a little bit and they are trying to design a product that is going to please the FDA and health agencies." In Kansas, Altria is testing a tobacco stick, a spit-free oral product consisting of finely milled, flavored tobacco coated on 2.5-inch wooden sticks. Altria and other major tobacco companies, including Richmond-based Swedish Match North America, also are trying to develop a larger market in the United States for snus, a type of smokeless, spit-free tobacco that has been popular for many years in Sweden. Snus is sold in small pouches that are placed under the upper lip, enabling consumers to use it discreetly. Verve is a departure from those other types of alternative tobacco products in that it contains no tobacco. It is made from a polymer and non-tobacco cellulose fibers with mint flavoring and nicotine, Altria said. Verve will be sold in packages of 16 pieces or "discs." The consumer either chews a piece or holds it in his mouth for 10 to 15 minutes and then discards it. The nicotine in the product is derived from tobacco, which means Verve should fall under the Food and Drug Administration's regulatory authority over tobacco products. However, the agency has not yet released regulations for novel, or "other tobacco products," that do not fall clearly into the cigarette or smokeless categories. An FDA spokeswoman said yesterday that the agency had not done a jurisdictional review on the product, so it cannot comment. "It was inevitable that products like this would be produced," said Matthew Myers, president of the Campaign for Tobacco-Free Kids. "But it also makes it far more urgent that FDA close the loophole." "In the absence of FDA review of the contents of the product, the American public is essentially being asked to be human guinea pigs," Myers said. Altria said Verve's packaging and ads will carry this warning: "This product contains nicotine, which is addictive. Nicotine can harm your baby if you are pregnant or nursing. Nicotine can increase your heart rate, blood pressure and aggravate diabetes. Nicotine can cause dizziness, nausea and stomach pain." The company said it will be sold in child-resistant packaging. Sylvia said, "It will be sold only to those who are 18 years of age and older." Each Verve disc contains about 1.5 mg of nicotine, which is lower than the range of nicotine typically found in pouch tobacco products now on the market, the company said. The retail cost could vary but is expected to be around $3 for a package of 16 discs. Enditem