22nd Century Group aims to reach 5,000 retail outlets by 2026

MOCKSVILLE, N.C., Lawrence Firestone, Chief Executive Officer of 22nd Century Group Inc., has outlined the company's strategic plans and progress in a mid-year letter to stockholders. The focus is on expanding the company's retail presence, driving commercial execution, and improving the economic health of its business.

According to Firestone, 22nd Century Group, the leading low-nicotine tobacco company, is on track to reach approximately 5,000 retail outlets by the end of 2026. Currently, the company's VLN® cigarettes are available in around 2,000 retail outlets across the United States. Firestone noted that the company has seen positive consumer feedback, with many adult smokers expressing satisfaction with the switch to VLN® cigarettes.

To capitalize on this growing demand, 22nd Century has launched Pinnacle Pure alongside Pinnacle VLN® in states that have authorized these products. The company is also expanding its presence in high-visibility markets such as California and the metro New York and northern New Jersey regions. Additionally, a new digital convenience platform is set to offer direct-to-consumer home delivery, expected to launch in the fourth quarter of 2026.

Firestone emphasized the importance of execution in driving the company's growth. "We are focused on expanding our commercialization efforts, improving the economics of the business, and positioning the company for sustainable, profitable growth," he said.

Data on same-store sales shows a steady increase, with VLN® cigarette trial converting to carton purchases rather than individual packs. Retail point-of-sale data indicates that VLN® cigarette volume has grown by an average of 10% per month in non-promotion periods. The company now estimates that active VLN® user trial exceeds 5,000 cases and continues to grow monthly.

Firestone also highlighted the company's efforts to improve the economic quality of its revenue. The shift to a more branded portfolio is key, as it will help drive profitability. The third quarter of 2026 marks the beginning of this shift, which is expected to continue.

Looking ahead, 22nd Century Group plans to leverage its robust intellectual property portfolio to build a broader platform appealing to diverse consumer choices. This will involve expanding the VLN® product offerings and form factors, supporting additional partner opportunities, and selectively pursuing ways to leverage the company's proprietary low-nicotine technology more broadly.

Firestone concluded, "Our path forward is grounded in a large, unserved market of smokers seeking a low-nicotine combustible alternative. We are committed to driving consumer awareness, smoking adoption, and brand loyalty, while maintaining pricing discipline."

The company believes that successful execution across these fronts can lead to stronger business performance, broader investor recognition, and a more appropriate market valuation. With an estimated $50 billion annual US combustible cigarette market, 22nd Century Group aims to capture a meaningful portion of this market through its innovative products and strategic initiatives.

22nd Century Group continues to innovate in the tobacco harm reduction movement, with its flagship VLN® cigarette offering a low-nicotine combustible alternative to traditional cigarettes. The company's technology involves proprietary non-GMO reduced nicotine tobacco plants developed using patented technologies to regulate alkaloid biosynthesis activities.