Intrepid today announced that it served as the exclusive financial advisor to DRYFT Sciences, LLC (DRYFT) on the sale of its nicotine pouch product assets to the U.S. business of British American Tobacco plc (BAT) (LSE: BATS), a global provider of tobacco and next-generation alternative nicotine products and the owner of notable alternative nicotine brands Velo, Lyft, VUSE, and glo. Based in Moorpark, Calif., DRYFT is a leading innovator in the rapidly growing smokeless modern oral segment, which has seen increased consumer demand for alternative nicotine products. Founded in January of 2020, after spinning out of Kretek International, DRYFT is a leader in the fast-growing modern oral nicotine category serving consumers through a broad range of channels, including direct-to-consumer, retail, and FDM. DRYFT’s all-white nicotine pouches offer eight unique flavors in nicotine strengths of 2 mg, 4 mg, and 7 mg, providing adult consumers an alternative to traditional tobacco products.
Jason Carignan, President of DRYFT, shared: “This is an exciting time for DRYFT as our product integrates into BAT’s Velo nicotine pouch product line. We’re proud of the tremendous momentum we’ve built with DRYFT and thrilled that our strong product portfolio will now serve to enhance the Velo brand. We remain confident that modern oral innovations like DRYFT and Velo will continue to find an adult consumer base seeking alternatives to traditional products. I cannot thank the Intrepid team enough for guiding us through this process; from start to finish, they were true partners and a natural extension of our team with their resilience and tenacity.”
“DRYFT and Kretek were early to see the opportunity and embrace the modern oral nicotine segment, achieving key milestones since launching the product in 2016. We believe the sale of the DRYFT nicotine pouch product assets to BAT will allow the product to accelerate its growth through increased distribution channels and marketing capabilities,” said Mike Seccuro, Managing Director and Head of the Food, Beverage & Agriculture practice at Intrepid.
Headquartered in London, England, British American Tobacco is a global tobacco group with brands sold in more than 200 markets. It employs more than 50,000 people worldwide and has over 200 brands in its portfolio. BAT has market-leading positions in at least 55 markets around the world. The acquisition of the DRYFT nicotine pouch product assets was made through Modoral Brands Inc., an indirect, wholly-owned subsidiary of BAT’s U.S. subsidiary, Reynolds American Inc.
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About Intrepid’s Food, Beverage & Agriculture Practice
Intrepid’s Food, Beverage & Agriculture team has the experience, knowledge, and an understanding of international trade policy, climate change, demographic shifts, evolving consumer tastes, and the adoption of new technologies that are driving disruption across the entire value chain and how these forces interact with each other and impact your business. Our experience spans the full range of transaction sizes, types, and drivers, from multi-billion-dollar marquee strategic transactions to emerging growth capital raises.