BAT pauses plan to launch unlicensed e-cigarette in US

British American Tobacco said it has paused a pilot plan to launch an unlicensed disposable vape in the US, as the Food and Drug Administration moves to crack down on unregulated products and speed up licences.

- EMMA RUMNEY

BAT's previously unreported reversal reveals the complex battle big tobacco faces to compete with a wave of unregulated products, largely from China, that have dented profits in the $22 billion US market for smoking alternatives.

The company also makes Lucky Strike and Dunhill cigarettes.

Marlboro-maker Philip Morris International said in September it was open to making a similar move with versions of its Zyn nicotine pouch label.

BAT's Reynolds American will pause the pilot launch for Vuse One, which it acquired in April, for now, a spokesperson told Reuters, after the US subsidiary had laid out plans for the launch without FDA authorisation earlier this year.

While only a pilot, the plan marked an assertive shift in big tobacco's approach to FDA rules the industry says stymie its ability to compete and triggered broad interest among investors, rivals and regulators.