Jefferies sees FDA's fruit-flavoured eVape approval as positive for BAT

Investing.com -- The U.S. Food and Drug Administration has approved Glas Inc's applications for fruit-flavored age-gated eVapour products, including mango, blueberry and two varieties of menthol, according to a note from Jefferies.

These are the first flavored eVapour products to receive FDA approval since a 2020 ban on non-tobacco and non-menthol flavored eVapes, Jefferies said.

Following the 2020 ban, illicit fruit-flavored eVapour products grew to represent approximately 65-75% of total U.S. eVapour volumes, while legal competitors, restricted to tobacco and menthol flavors, registered volume declines, the note said.

Enforcement of regulation covering illicit eVapour products improved in 2025 and early 2026, Jefferies added.

While only Glas's flavored eVapes have received FDA approval, Jefferies believes the creation of a legal flavored eVapour market represents a positive for British American Tobacco (NYSE: BTI), the largest player in the tracked U.S. eVapour flavored or decisions around British American Tobacco, Philip Morris (NYSE: PM) and Altria's (NYSE: MO) pending Oral Nicotine Pouch applications, the note said.

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