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The reduced-risk appliance Philip Morris International (NYSE: PM) filed for its iQOS heat-not-burn cyberbanking cigarette acutely gets the best media attention, but it is not the alone aggregation with such a address afore the U.S. Food and Drug Administration, nor was it the first. That acumen belongs to a Swedish architect of a snuff-like adjunct alleged snus, and now the authoritative bureau has agreed to acquire addition appliance for this abstruse but added accustomed tobacco product, this time from British American Tobacco’s (NYSE: BTI) Reynolds American division.

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Snus are about baby packets of clammy snuff that are placed beneath the high lip, admitting tins of apart crumb can additionally be found. The better architect of snus in the U.S. is Reynolds, whose Camel cast is the arch clammy snuff on the market. Swedish Match (NASDAQOTH: SWMAF) is the better ambassador in Sweden, but the third better in the U.S.

Variety of snus from Swedish Match

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Image source: Swedish Match.

The history of snus extends aback to the aboriginal Taino bodies of the Caribbean, who aboriginal snorted ground-up seeds of a Mimosa-like timberline that produced a consciousness-expanding effect. This snuff-like crumb alleged cohoba was aboriginal actual in 1497 by the abbot Ramon Pane, who sailed with Christopher Columbus on his additional adventure to the Americas.

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It ultimately was alien into Europe, area it became associated with tobacco snuff. A Swedish community certificate from the mid-1600s fabricated the aboriginal official acknowledgment of snus, and in avant-garde times it has developed so accustomed there that it has continued back surpassed cigarettes in sales. Today, the auction of snus is banned in the European Union except for Sweden, as able-bodied as in Australia.

In its third-quarter balance address afore clearly folding into British American Tobacco’s portfolio, Reynolds said Camel snus endemic a rather amazing 75% allotment of the U.S. market. In comparison, its Camel cast of cigarettes had alone an 8.3% share.

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In March, Reynolds submitted 18 modified-risk applications with the FDA that awning six altered styles of Camel snus. Recently, the bureau accustomed and filed them for absolute review, which should be completed aural the year.

Reynolds addendum in the SEC filing that the FDA has not accepted any added architect a reduced-risk designation, but that doesn’t beggarly it wouldn’t.

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Shortly afterwards Philip Morris had submitted its IQOS reduced-risk appliance with the FDA in December 2016, the bureau advised Swedish Match’s appliance for its snus and disqualified the aggregation couldn’t aish a admonishing characterization adage the articles may account gum ache and tooth loss, because the FDA begin that they could.

However, the FDA captivated off on chief whether the aggregation could affirmation they were beneath adverse than cigarettes and whether they acquired aperture blight because it believed Swedish Match could refile an appliance “supporting arising of adapted accident orders.”

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Swedish Match may accept overreached in its efforts to get a added favorable analysis than was warranted, but the FDA absolutely assured snus “may affectation essentially lower bloom risks to alone smokers who about-face absolutely to these products.” That bodes able-bodied for Reynolds back its snus appear beneath analysis — it could auspiciously become one of the aboriginal companies to acquire a reduced-risk appellation for a tobacco product.

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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a acknowledgment policy.

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