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22nd Century Group Reports Continued Early Sales Momentum for VLN® Cigarette Products

MWN-AI** Summary

22nd Century Group, Inc. (Nasdaq: XXII), a leader in tobacco harm reduction, is experiencing strong early sales momentum for its VLN® low nicotine cigarette products, which aim to cater to adult smokers seeking to control their nicotine intake. As of February 23, 2026, the company announced increased distribution, with plans to exceed 5,000 retail outlets nationwide, having distributed approximately 8,800 cartons across 1,700 new stores during the last quarter of 2025.

VLN® is notable as it is the only FDA-authorized combustible cigarette explicitly designed to reduce nicotine consumption significantly, containing 95% less nicotine than traditional cigarettes. This aligns with emerging regulatory momentum, notably the FDA’s proposed rule to cap nicotine levels in combustible cigarettes to 0.7 mg, positioning 22nd Century favorably within this evolving regulatory landscape.

CEO Larry Firestone emphasized the company's commitment to addressing nicotine addiction, stating that VLN® products are beginning to resonate with a large, underserved segment of smokers. The company’s multi-faceted distribution strategy encompasses securing placements with large convenience chains, national wholesalers, and independent retailers, aiming to enhance visibility and consumer adoption.

This growth is further supported by international interest in 22nd Century’s proprietary technology and tobacco plant innovations, reinforcing its mission to facilitate the transition to minimally addictive combustible cigarettes. Relying on decades of clinical research and regulatory backing, 22nd Century Group is committed to transforming the tobacco industry while ensuring adult consumers have access to legitimate alternatives in their smoking habits. As regulatory bodies globally focus on nicotine reduction, 22nd Century positions itself at the forefront of this significant market shift.

MWN-AI** Analysis

22nd Century Group, Inc. (Nasdaq: XXII) is making significant strides with its VLN® low nicotine cigarettes, which might transform the tobacco market by catering to health-conscious consumers. The company's recent announcement indicates strong sales momentum, with projections to expand its retail presence to over 5,000 outlets nationwide by the end of 2026. This growth is attributed to increased consumer interest in harm-reduction products amid evolving regulatory pressures, notably the FDA's proposed nicotine cap, which aligns with global tobacco control initiatives.

From a market perspective, 22nd Century presents a compelling opportunity. As adult smokers seek alternatives to manage their nicotine intake, VLN® provides an FDA-authorized option that stands out in its category. The rapid adoption figures, with roughly 8,800 cartons distributed across 1,700 retail locations, suggest robust initial market validation. This traction positions VLN® to capture a substantial share of a market that is increasingly leaning towards reduced-harm products.

Investors should consider that regulatory dynamics significantly impact the tobacco landscape. The FDA's push for lower nicotine levels could benefit companies like 22nd Century, which are aligned with these initiatives. The company's diversified distribution strategy and partnerships with major retailers enhance visibility and accessibility, crucial for driving adoption and sales.

While there are potential risks associated with regulatory changes and competition in the tobacco sector, 22nd Century's commitment to reducing nicotine addiction positions it as a leader in the tobacco harm reduction movement. The current momentum indicates a promising long-term growth trajectory. Therefore, investors may find 22nd Century Group a compelling addition to portfolios focused on sustainable and socially responsible investment opportunities in an evolving industry.

**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.

Source: GlobeNewswire

Expansion in 2026 Forecasted to Exceed 5,000 Retail Outlets Nationwide as Consumers Demonstrate Interest in VLN® Brands

VLN® Remains the Only FDA-Authorized Combustible Cigarette Designed to Reduce Nicotine Consumption

MOCKSVILLE, N.C., Feb. 23, 2026 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company focused on reducing the harms of smoking through nicotine reduction, today announced continued early sales momentum for its VLN® low nicotine cigarette products in the U.S. market.

The Company’s proprietary low nicotine technology is designed to serve adult smokers who want to change their smoking habits by significantly reducing nicotine consumption. 22nd Century is focusing on smoker health and wellness by giving smokers an opportunity to control their tobacco consumption, rather than switching them to another highly addictive product like a vape or pouch.

Regulatory Momentum Underscores Significant Market Opportunity

The Company’s progress aligns with accelerating regulatory developments. In January 2025, the U.S. Food and Drug Administration issued a proposed rule to mandate a maximum nicotine level of 0.7 milligrams per gram of tobacco in combustible cigarettes. If finalized, the rule would require cigarettes sold in the United States to contain minimally addictive or non-addictive levels of nicotine. 22nd Century believes VLN® is uniquely positioned in this evolving regulatory landscape, demonstrating both the scientific and commercial feasibility of very low nicotine cigarettes.

Globally, nicotine reduction is also supported under the WHO Framework Convention on Tobacco Control, developed under the auspices of the World Health Organization. The FCTC recognizes product regulations, including nicotine reduction to minimally addictive levels—as a key strategy for reducing tobacco dependence and supporting cessation. Together, these developments reinforce what 22nd Century has long advanced: reducing nicotine content is central to addressing addiction itself.

Early Commercial Traction and Expanding Retail Footprint

In the fourth quarter of 2025, approximately 8,800 cartons of VLN® low nicotine combustible cigarettes were distributed across approximately 1,700 new retail outlets nationwide. Initial sell-through data from participating retailers indicates encouraging early consumer adoption, with adult smokers now purchasing VLN® products across all three brand presentations: 22nd Century VLN®, Pinnacle VLN®, and Smoker Friendly VLN®.

Smokers seeking greater control over nicotine intake are beginning to incorporate VLN® products into their smoking journey, validating the Company’s belief that a large, underserved segment of adult smokers is looking for meaningful alternatives.

Expanding distribution across multiple classes of trade is central to unlocking this opportunity. By securing placement with large convenience store retailers, national and regional wholesalers, and independent chains, 22nd Century is broadening access, increasing visibility, and strengthening replenishment cycles. This diversified distribution strategy is designed to accelerate awareness, trial, and sustained adoption as retail points of distribution expand.

“We have achieved ignition. Following our initial distribution phase, smokers are now purchasing our VLN® combustible cigarettes across all markets,” said Larry Firestone, Chief Executive Officer of 22nd Century Group. “Early adoption validates years of scientific investment and positions us at the forefront of a potentially transformative shift in the tobacco industry. At the same time, we are seeing growing international interest—from markets exploring tobacco harm reduction policies to potential partners interested in our proprietary very low nicotine tobacco leaf.”

Firestone continued, “This is a long-term opportunity. As we continue to demonstrate sustained smoker adoption of VLN® products, we expect to expand our retail footprint. We plan to grow to more than 5,000 points or more of distribution in 2026 by continuing to add new retail partners across all classes of trade and have significantly advanced sales discussion with partners we anticipate adopting VLN® branded products over the upcoming months. We remain committed to addressing nicotine addiction itself and making our reduced-nicotine products broadly available to adult consumers.”

“As regulatory bodies in the United States and around the world increasingly consider nicotine reduction as a cornerstone of tobacco control policy, we believe we are uniquely positioned at the intersection of science, regulation, and consumer demand. By combining proprietary plant biotechnology, FDA-authorized claims, and expanding retail distribution, the Company aims to play a leading role in accelerating the transition toward minimally addictive combustible cigarettes and supporting adult smokers seeking meaningful change.” concluded Firestone.

FDA Authorization and Scientific Foundation

VLN® low nicotine combustible cigarettes were authorized in December 2021, making them the first and still the only combustible cigarettes authorized by the U.S. Food and Drug Administration specifically to help reduce nicotine consumption.

Decades of independent clinical research and peer-reviewed studies—evaluated as part of the FDA’s Modified Risk Tobacco Product (MRTP) authorization process—demonstrated that reducing nicotine content can decrease nicotine intake, increase quit attempts, and reduce overall exposure to nicotine.

FDA-authorized VLN® claims include:

  • “95% less nicotine”
  • “Helps reduce your nicotine consumption”
  • “Greatly reduces your nicotine consumption”
  • “Helps you smoke less”

About 22nd Century Group, Inc.

22nd Century Group is pioneering the Tobacco Harm Reduction Movement by enabling smokers to take control of their nicotine consumption.

Our Technology is Tobacco

Our proprietary non-GMO reduced nicotine tobacco plants were developed using our patented technologies that regulate alkaloid biosynthesis activities resulting in a tobacco plant that contains 95% less nicotine than traditional tobacco plants. Our extensive patent portfolio has been developed to ensure that our high-quality tobacco can be grown commercially at scale. We continue to develop our intellectual property to ensure our ongoing leadership in the tobacco harm reduction movement.

Our Products

We created our flagship product, the VLN® cigarette using our low nicotine tobacco, to give traditional cigarette smokers an authentic and familiar alternative in the form of a combustible cigarette that helps them take control of their nicotine consumption. VLN® cigarettes have 95% less nicotine compared to traditional cigarettes and have been proven to allow consumers to greatly reduce their nicotine consumption.

VLN® and Helps You Smoke Less® are registered trademarks of 22nd Century Limited LLC.

Learn more at xxiicentury.com, on X (formerly Twitter), on LinkedIn, and on YouTube.

Learn more about VLN® at tryvln.com.

Cautionary Note Regarding Forward-Looking Statements

Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including but not limited to our full year business outlook. Forward-looking statements typically contain terms such as “anticipate,” “believe,” “consider,” “continue,” “could,” “estimate,” “expect,” “explore,” “foresee,” “goal,” “guidance,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “preliminary,” “probable,” “project,” “promising,” “seek,” “should,” “will,” “would,” and similar expressions. Forward-looking statements include, but are not limited to, statements regarding (i) our cost reduction initiatives, (ii) our expectations regarding regulatory enforcement, including our ability to receive an exemption from new regulations, and (iii) our financial and operating performance. Actual results might differ materially from those explicit or implicit in forward-looking statements. Important factors that could cause actual results to differ materially are set forth in “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 20, 2025 and Quarterly Reports on Form 10-Q on May 13, 2025, August 14, 2025, and November 4, 2025. All information provided in this release is as of the date hereof, and the Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.

Investor Relations & Media Contact
Matt Kreps
Investor Relations
22nd Century Group
investorrelations@xxiicentury.com
214-597-8200


FAQ**

How does 22nd Century Group Inc. (XXII) plan to address potential challenges in expanding to over 5,000 retail outlets by 2026, given the competitive landscape and evolving consumer preferences towards nicotine products?

22nd Century Group Inc. plans to tackle challenges in expanding to over 5,000 retail outlets by 2026 through strategic partnerships, innovative product offerings that cater to changing consumer preferences, and a robust marketing strategy to stand out in the competitive landscape.

What specific metrics will 22nd Century Group Inc. (XXII) use to measure the success of VLN® cigarette adoption among adult smokers as they expand their retail footprint in 2026?

22nd Century Group Inc. (XXII) will measure the success of VLN® cigarette adoption using metrics such as sales volume, market share growth, consumer feedback, repeat purchase rates, and the number of retail partnerships established during their expansion in 2026.

In light of the FDA's proposed nicotine regulation, how does 22nd Century Group Inc. (XXII) intend to leverage its unique position in the market to drive sales and consumer interest in VLN® products?

22nd Century Group Inc. plans to capitalize on its unique low-nicotine tobacco products, VLN®, by emphasizing their FDA-compliant innovation and potential to meet regulatory standards, attracting health-conscious consumers seeking reduced nicotine options and driving sales growth.

How will 22nd Century Group Inc. (XXII) ensure that its distribution strategy effectively reaches diverse retail channels while maintaining product visibility and consumer engagement for its VLN® cigarette line?

22nd Century Group Inc. (XXII) will implement a multi-faceted distribution strategy that leverages partnerships with diverse retail channels, targeted marketing campaigns, and consumer engagement initiatives to enhance visibility and accessibility for its VLN® cigarette line.

**MWN-AI FAQ is based on asking OpenAI questions about 22nd Century Group Inc (NASDAQ: XXII).

22nd Century Group Inc

NASDAQ: XXII

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