22nd Century Revenue Growth from Continued Expansion of CMO Volume with New Filtered Cigar Agreements
22nd Century Group (XXII) has secured two new agreements with former customers for filtered cigar production, expanding its Contract Manufacturing Operations (CMO). The company expects to initiate shipments in Q2 2025, with projected annual volumes of 500,000+ cartons.
This development follows a previous agreement signed in Q3 2024 with another filtered cigar customer. The new agreements are structured to provide appropriate gross margins and consistent volume, strengthening the company's CMO platform and supporting its growth strategy. Additionally, these partnerships could potentially facilitate the expansion of VLN® through established retail channels and trusted partner brands.
22nd Century Group (XXII) ha ottenuto due nuovi accordi con ex clienti per la produzione di sigari filtrati, espandendo le sue Operazioni di Produzione in Contratto (CMO). L'azienda prevede di avviare le spedizioni nel secondo trimestre del 2025, con volumi annuali previsti superiori a 500.000 cartoni.
Questo sviluppo segue un precedente accordo firmato nel terzo trimestre del 2024 con un altro cliente di sigari filtrati. I nuovi accordi sono strutturati per garantire margini lordi appropriati e un volume costante, rafforzando la piattaforma CMO dell'azienda e supportando la sua strategia di crescita. Inoltre, queste collaborazioni potrebbero facilitare l'espansione di VLN® attraverso canali di vendita al dettaglio consolidati e marchi partner fidati.
22nd Century Group (XXII) ha asegurado dos nuevos acuerdos con antiguos clientes para la producción de cigarros filtrados, ampliando sus Operaciones de Fabricación por Contrato (CMO). La compañía espera iniciar los envíos en el segundo trimestre de 2025, con volúmenes anuales proyectados de más de 500,000 cartones.
Este desarrollo sigue a un acuerdo previo firmado en el tercer trimestre de 2024 con otro cliente de cigarros filtrados. Los nuevos acuerdos están estructurados para proporcionar márgenes brutos adecuados y un volumen constante, fortaleciendo la plataforma CMO de la empresa y apoyando su estrategia de crecimiento. Además, estas asociaciones podrían facilitar la expansión de VLN® a través de canales de venta al por menor establecidos y marcas asociadas de confianza.
22nd Century Group (XXII)는 필터가 있는 시가 생산을 위한 이전 고객과 두 개의 새로운 계약을 체결하여 계약 제조 운영(CMO)을 확장했습니다. 이 회사는 2025년 2분기에 배송을 시작할 것으로 예상하며, 연간 예상 물량은 500,000개 이상의 카톤입니다.
이 개발은 2024년 3분기에 또 다른 필터 시가 고객과 체결한 이전 계약에 이어진 것입니다. 새로운 계약은 적절한 총 마진과 일관된 물량을 제공하도록 구조화되어 있으며, 회사의 CMO 플랫폼을 강화하고 성장 전략을 지원합니다. 또한 이러한 파트너십은 확립된 소매 채널과 신뢰할 수 있는 파트너 브랜드를 통해 VLN®의 확장을 촉진할 수 있습니다.
22nd Century Group (XXII) a sécurisé deux nouveaux accords avec d'anciens clients pour la production de cigares filtrés, élargissant ses opérations de fabrication sous contrat (CMO). L'entreprise prévoit de commencer les expéditions au deuxième trimestre 2025, avec des volumes annuels projetés de plus de 500 000 cartons.
Ce développement fait suite à un accord précédent signé au troisième trimestre 2024 avec un autre client de cigares filtrés. Les nouveaux accords sont structurés pour offrir des marges brutes appropriées et un volume constant, renforçant la plateforme CMO de l'entreprise et soutenant sa stratégie de croissance. De plus, ces partenariats pourraient potentiellement faciliter l'expansion de VLN® à travers des canaux de vente au détail établis et des marques partenaires de confiance.
22nd Century Group (XXII) hat zwei neue Vereinbarungen mit ehemaligen Kunden zur Produktion von gefilterten Zigarren gesichert und damit ihre Vertragsfertigungsoperationen (CMO) ausgeweitet. Das Unternehmen erwartet, im zweiten Quartal 2025 mit den Lieferungen zu beginnen, mit prognostizierten Jahresvolumina von über 500.000 Kartons.
Diese Entwicklung folgt einer vorherigen Vereinbarung, die im dritten Quartal 2024 mit einem anderen gefilterten Zigarren-Kunden unterzeichnet wurde. Die neuen Vereinbarungen sind so strukturiert, dass sie angemessene Bruttomargen und ein konsistentes Volumen bieten, wodurch die CMO-Plattform des Unternehmens gestärkt und seine Wachstumsstrategie unterstützt wird. Darüber hinaus könnten diese Partnerschaften potenziell die Expansion von VLN® über etablierte Einzelhandelskanäle und vertrauenswürdige Partnermarken erleichtern.
- Secured two new filtered cigar production agreements with former customers
- Expected annual production volume of 500,000+ cartons
- Agreements structured to provide gross margin
- Potential expansion pathway for VLN® through established retail channels
- None.
MOCKSVILLE, N.C., April 09, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine by offering smokers a choice about their nicotine consumption, today announced execution of two new agreements from former customers to supply their filtered cigar products.
As part of our expanding customer partnerships, 22nd Century Group is increasing production of filtered cigars. Initial shipments are expected in the second quarter of 2025, with volumes anticipated to be 500,000 cartons or more on an annual basis.
“Over the past six months, we’ve been working to lock in new opportunities and expand our core CMO business with our legacy filtered cigar customers,” said Larry Firestone, CEO of 22nd Century Group. “Today, we’re excited to share that we’ve secured two new customer agreements, each priced appropriately to provide gross margin and consistent volume.
These agreements build on the momentum that began in Q3 2024, when we signed an agreement with a new filtered cigar customer. This filtered cigar volume reinforces the strength of our CMO platform and supports our broader growth strategy. More importantly, it creates a potential path to expand the footprint of VLN® through trusted partner brands and established retail channels.”
About 22nd Century Group, Inc.
22nd Century Group is the pioneering nicotine harm reduction company in the tobacco industry enabling smokers to take control of their nicotine consumption.
We created our flagship product, the VLN® cigarette, to give traditional cigarette smokers an authentic and familiar alternative that helps them take control of their nicotine consumption. VLN® cigarettes have
Our wholly owned subsidiaries include a leading cigarette manufacturer that produces all VLN® products and provides turnkey contract manufacturing for other tobacco brands both domestically and internationally. The 60,000 square foot facility in Mocksville, North Carolina has the capacity to produce more than 45 million cartons of combustible tobacco products annually with additional space for expansion.
Our proprietary reduced nicotine tobacco blends are made possible by comprehensive and patented technologies that regulate nicotine biosynthesis activities in the tobacco plant, resulting in full flavor and high yield with
VLN® is a registered trademark 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, (iii) our financial and operating performance and (iv) our expectations for our business interruption insurance claim. 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. 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
mkreps@xxiicentury.com
214-597-8200
FAQ
What is the expected annual production volume for XXII's new filtered cigar agreements?
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How many new filtered cigar agreements has XXII secured recently?
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