“We now expect to have capacity to support our expansion plans for NJOY moving forward.”

In context

“ew approximately 35% in 2023. We believe the category growth was largely driven by illicit flavored disposable products, which we estimate represents over 50% of the category. We estimate that pod-based products declined approximately 50%, and represent between 15% to 20% of the category. We continue to believe the e-vapor category is in the beginning of a reset and the steps that we have taken since closing the NJOY transaction will allow us to responsibly participate in the category's growth. Let's briefly recap our 2023 actions with NJOY, following the completion of our acquisition on June 1st. First, we strengthened NJOY's supply chain to enable our expansion plans. Our teams work diligently to solidify the entire supply chain from sourcing direct materials through shipment to retail. We now expect to have capacity to support our expansion plans for NJOY moving forward. Next, we prioritize closing inventory gaps at retail and expanding distribution of ACE. For example, prior to closing, a number of stores had ACE pods in distributions, but no devices. While other stores were missing various pod varieties. Our teams have closed inventory gaps in stores that already had distribution, which has significantly improved in stock conditions at retail. During the fourth quarter, we expanded distribution of ACE to over 75,000 stores, surpassing our previously announced goal of 70,000 stores. These stores represent approximately 75% of e-vapor for volume, and 55% of cigarette volume sold in the U.S. multi-outlet and convenience channel. We also introduced NJOY's first retail trade program, which we will -- we believe will help NJOY achieve optimal visibility and p”