Tobacco firm's fivefold increase in nicotine pouch sales amid moves to ban them for minors
Gordon Deegan
The Irish arm of global tobacco giant, British American Tobacco, has reported that its nicotine pouch sales soared in Ireland last year.
PJ Carroll & Co Ltd's nicotine pouch sales increased almost fivefold to 29 million in 2024, up from 6 million in 2023.
The directors for PJ Carroll & Co Ltd confirm that sales of VELO “delivered exceptional growth in 2024" where revenues from VELO increased by 442 per cent on 2023.
The firm only launched its VELO brand in June 2023, and it contributed 3 per cent of overall revenues that year.
The directors state that the VELO brand achieved a 45.9 per cent market share in 2024.
PJ Carroll and Co Ltd’s overall net revenues increased by 11 per cent from €30.53 million to €33.75 million.
The directors state that the revenues performance “was driven by strong growth in VELO and continued Vapour momentum offsetting the decline in combustible volumes”.
They said that although combustible volumes declined by 11 per cent on 2023 to 200m sticks, “the business delivered strong value extraction through manufacturers' price increase in April 2024".
Combustibles revenue totalled 71 per cent of total business in 2024 compared to 75 per cent of revenues in 2023. Revenues from the sale of ‘vapes’ increased by 2 per cent last year.
The firm achieved gross revenues of €179.43 million in 2024, which included €145.67 million in excise duties and other taxes.
Pre-tax profits at PJ Carroll & Company Ltd last year declined by 8 per cent to €5.69 million.
The sharp increase in sales of VELO comes against the background of the Cabinet giving approval to the Minister for Health, Jennifer Carroll MacNeill, to develop a law to prohibit the sale to minors of nicotine products such as pouches.
The new law is also to prohibit the advertising of these products in all retail outlets and their display in mixed retail outlets.
Nicotine pouches are typically white and contain a powder made of the highly addictive chemical nicotine, flavourings and other ingredients. They are typically placed between a person’s lip and gum.
This year’s Health Ireland survey found that 1 per cent of the population use nicotine pouches, with this rising to 3 per cent in the 15 to 24-year-old cohort. Men are more likely than women to use them, the survey said.
Belgium, France and the Netherlands have all introduced bans on nicotine pouches, while other EU countries are introducing or considering tighter regulation around the products.
Numbers employed at PJ Carroll & Co Ltd totalled 22 and staff costs totalled €1.3 million. Directors’ remuneration totalled €204,000.
A note states that the company is undergoing an audit of its tax affairs in the Republic of Ireland.
The note states that the company "has paid €1.2m to Irish Revenue subsequent to year end and which is provided for in these financial statements in relation to the tax audit".
The directors state that illicit and duty-free purchasing was a combined 37 per cent of the market in 2024, according to Revenue Commissioner's own figures.
Accumulated profits stood at €40.8 million.
