Industry reacts as Health Canada bans convenience stores from selling nicotine pouches
Beginning August 28, convenience stores and gas stations will no longer be able to sell nicotine pouches, which are to be available exclusively at pharmacies.
The move, a blow to the channel, comes after Mark Holland, Minister of Health, announced that Health Canada is introducing new measures for (Nicotine Replacement Therapy) NRTs through a Ministerial Order to reduce the appeal of, access to, and use of these products by young people for recreational purposes.
"Stronger measures are needed to protect youth from the harmful effects of nicotine and stop dependency before it starts. The action our government is taking will keep these products available for adults who need them to quit smoking while making sure they don't get into the hands of youth for recreational use,” Holland said upon the announcement of the new measures.
The Order introduces new measures that will:
- Prohibit advertising or promotion, including labelling and packaging, that could be appealing to youth.
- Require NRTs in new and emerging formats, such as nicotine pouches, to be sold only by a pharmacist or an individual working under the supervision of a pharmacist, and to be kept behind the pharmacy counter.
- Prohibit NRTs in new and emerging formats, such as nicotine pouches, from being sold with flavours other than mint or menthol.
- Require a front of package nicotine addiction warning, as well as a clear indication of the intended use as a smoking cessation aid for adults trying to quit smoking.
- Require manufacturers to submit mock-ups of labels and packages for all new or amended NRT licenses to ensure no youth appeal.
For adults who smoke and are trying to quit, smoking cessation aids, such as nicotine gums, lozenges, sprays and inhalers, which have an established history of appropriate use, will continue to be available in a wide range of retail locations, with a variety of flavours.
NRTs are regulated as drugs under the Food and Drugs Act. All NRTs must be approved by Health Canada and carry an approved health claim to be legally sold in Canada.
READ: CICC comes out against proposed legislation to remove NRTs from c-stores
Imperial Tobacco's nicotine pouch product, called Zonnic, was approved by Health Canada as an aid to quit smoking last year without any restrictions on the age of consumers.
But Holland has been saying for months that the pouches are being used by children and young people who have never smoked, calling that a "loophole" for tobacco companies.
Imperial Tobacco has accused the minister of unfairly penalizing their highly regulated product while turning a blind eye to similar, unregulated versions that can be easily ordered online.
The minister added he's still exploring ways of preventing those products from entering the country.
Anne Kothawala, president and CEO of the Convenience Industry Council of Canada responded to the news and Holland's remarks that he and "the Trudeau government have chosen to ignore law-abiding retailers, in favour of organized criminals who are willing to sell nicotine products to young people."
"Limiting the sale of nicotine pouches exclusively to pharmacies reduces access to cessation products, and does nothing to curb the supply of unregulated products readily available online, to anyone looking to buy. It also ignores the wishes of pharmacists, provinces and territories who have expressed concern over the increased workload they will face with this measure," she continued. "Convenience stores will continue to act as responsible retailers of age-restricted products, and are calling on the federal government to reverse this decision.”
Leading members of the United Korean Canadian Industry Alliance (UKCIA) and the Ontario Korean Business Association (OKBA) came together at a downtown Toronto convenience store to address the federal government's accusations around the sale of smoking cessation products.
The event, hosted by Kenny Shim, owner of Busy Bee Mart and chairman of both OKBA and UKCIA, included industry leaders from British Columbia. Both organizations advocated for fair treatment of convenience stores and highlighted their role and track record as responsible retailers.
Shim, who has been operating his downtown Toronto store for 34 years, emphasized the trust that convenience stores have built with their communities over time. "Convenience stores are responsible retailers," stated Shim. "We have an unrivaled record when it comes to checking ID and ensuring that age-restricted products are not sold to minors – better even than government-run liquor stores in many cases."
Shim expressed concern over Holland's suggestion that the sale of nicotine pouches in convenience stores is the reason why some youth are gaining access to the approved smoking cessation products, and his stated desire to restrict sales of such products to pharmacies, which serves only to benefit retail giants and pharmaceutical companies.
Shim noted that convenience stores have a long-standing history of selling age-restricted products such as tobacco, lottery tickets, and, in some provinces, alcohol, while strictly adhering to government regulations. Furthermore, he reminded people that while government has not imposed minimum age requirement for this product, retailers have collaborated with suppliers to voluntarily restrict access to people 19 years of age or older.
Shim was joined by two colleagues from the British Columbia Korean Businessmen's Association (BCKBA) who shared their experiences since that province restricted the sale of nicotine replacement therapy nicotine pouches to pharmacies. They claimed that this has driven the market underground, leading to the proliferation of illicit, unregulated products that are easily accessible to minors through online platforms or street vendors.
They urged Holland and his colleagues to work with convenience store owners to ensure that youth are protected while still allowing the sale of safe, regulated smoking cessation products to adult consumers.
"We know our customers by name, we know what they buy, and we talk to them about less harmful alternatives," said Shim. "We are ideally positioned to encourage smokers to purchase a cessation product instead of cigarettes. We cannot understand why Minister Holland does not recognize this."
The event concluded with a request urging Small Business Minister Rechie Valdez to advocate on behalf of convenience stores.
"Convenience stores are your partners in communities across Canada," Shim affirmed. "We are here to work with the government, not to be unfairly targeted."
The respective organizations will be initiating a letter writing campaign for their 2,500 members across Canada to write to their MP as well as Holland, expressing their concerns.
According to CBC News, the federal government will give Imperial Tobacco six months to make changes to its packaging and advertising. The new containers must include an addiction warning on the front label. Any advertising that could be appealing to youth must be changed by the end of February.
Eric Gagnon, vice-president, corporate and regulatory affairs at Imperial Tobacco Canada, told the national broadcaster he believes Holland has a "personal vendetta" against the company:
"Apparently because we're a tobacco company, we're treated differently than anybody else... The biggest losers right now are the adult smokers that have been using Zonnic."
“We believe the best place for them to be able to buy a cessation product is where they are buying cigarettes, and that is obviously in convenience stores and at gas stations,” adds Michael Bonelli, vice-president, commercial marketing and sales at Imperial Tobacco Canada.
He adds that governments already trust convenience stores to sell 'age-gated' products, such as cigarettes and in the province of Ontario to soon sell beverage alcohol that cannot be sold to youths. So its makes little sense to prevent such stores from selling NRTs to those who are legally able to purchase them and who would benefit from them.
As well, Bonelli worries that by restricting the sale of NRTs to pharmacies, it may cause people to seek them out through unregulated Internet sellers and non-legal sources.
-with additional files from Canadian Press
