- 22nd Century Group (XXII, Financial) secures two new agreements for filtered cigar production.
- Projected annual production volume exceeds 500,000 cartons.
- Partnerships could facilitate expansion of the VLN® product line through retail channels.
22nd Century Group, Inc. (XXII), a company renowned for its innovative tobacco products, has announced the execution of two new agreements with former customers to supply filtered cigars. This expansion of its Contract Manufacturing Operations (CMO) highlights the company’s strategic effort to strengthen its market position. The initial shipments under these agreements are expected to commence in Q2 2025, with an anticipated production volume exceeding 500,000 cartons annually.
These new agreements follow a similar accord signed in Q3 2024 with a different filtered cigar customer, further reinforcing 22nd Century's commitment to growth. The agreements are structured to ensure appropriate gross margins and consistent volume, thereby enhancing the company’s CMO platform.
Moreover, these partnerships present a potential pathway for the expansion of the VLN® product range through established retail channels and partnerships with trusted brands. The VLN® products are central to 22nd Century’s mission, as they offer consumers a choice in nicotine consumption by containing 95% less nicotine than traditional cigarettes.
As 22nd Century Group continues to secure strategic partnerships, its focus remains on expanding its production capabilities and reinforcing its position as a leader in the nicotine harm reduction sector.
