Market & legal data on the tobacco alternatives sector in Canada

10th March 2025: Canada: On 7th March, minister of mental health and addictions and associate minister of health, Ya'ara Saks, announced that the new Tobacco Charges Regulations will introduce a Tobacco Cost Recovery Framework. This framework aims to shift the financial burden of public health efforts to reduce tobacco use from taxpayers to tobacco companies, while reinforcing corporate accountability. In August 2024, Health Canada published a consultation document outlining the proposed framework, which includes an annual fee for designated tobacco product manufacturers and importers. The fee will be calculated based on each manufacturer’s share of the domestic tobacco market and will be subject to yearly adjustments. Vaping products are not included in the scope of this framework.
7th March 2025: Canada: Ontario Superior Court chief justice Geoffrey Morawetz approved a CAD32.5bn (USD22.6bn) settlement, in which three major tobacco companies will compensate provinces, territories and former smokers. The agreement, reached with creditors by Japan Tobacco International-Macdonald, Imperial Tobacco Canada, and Rothmans, Benson & Hedges, received unanimous approval by the creditors in a mid-December vote. Under the plan, the companies will pay over CAD24bn (USD16.7bn) to provinces and territories over approximately two decades. Meanwhile, plaintiffs in the Quebec lawsuits will receive more than CAD4bn (USD2.8bn) to be distributed among them. An additional CAD2.5bn (USD1.7bn) is allocated to compensate Canadian smokers not covered by the lawsuits, while over CAD1bn (USD697m) will fund a foundation dedicated to combating tobacco-related diseases.
3rd February 2025: US/Canada: US president Donald Trump is implementing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China, he said in a message posted on social media. In response, Canada will impose 25% tariffs on US goods, including vapes and other tobacco products, effective from 4th February 2025.
31st January 2025: Canada: An Ontario judge has started reviewing arguments on whether to approve an historic $32.5bn settlement, in which three major tobacco companies would compensate provinces, territories and former smokers. The agreement, reached with creditors by Japan Tobacco International (JTI)-Macdonald, Imperial Tobacco Canada, and Rothmans, Benson & Hedges, received unanimous approval by the creditors in a mid-December vote. Ontario superior court chief justice Geoffrey Morawetz will hear submissions from the companies and other involved parties in the coming days before deciding on the settlement’s approval.
7th October 2024: Canada: Convenience store firms Mac’s Convenience Stores, Couche-Tard, and Parkland have filed appeals with federal courts to overturn federal regulations that restrict the sale of nicotine pouches to pharmacies. The appellants argue that the new restrictions are unfair and unconstitutional, and they believe these regulations will increase demand for illegal products.
23rd August 2024: Canada: Health minister Mark Holland announced yesterday (22nd August) that a ministerial order will be issued to restrict sales of nicotine pouches to behind pharmacy counters, ban flavours other than mint and menthol, require these products to carry health warnings, and prohibit advertising and promoting them in a way that could appeal to youth. Holland said: “What I’m hoping to see is for these products to be used for what they’re intended to do – to help people stop smoking – and to stop dead in its tracks the explosion of these products that we’re seeing in youth.” In Canada, pouch sales require government approval and may only be sold as a smoking cessation aid.
2nd August 2024: Canada: Health Canada has published a consultation document on the proposed tobacco cost recovery framework which would implement an annual fee for designated tobacco product manufacturers, including importers. This fee would vary each year based on a manufacturer’s share of the domestic tobacco product market. Vaping products do not fall under the scope of the proposed framework. Comments can be submitted until 10th October.
20th June 2024: Canada: Health Canada has published the report of the second review of the Tobacco and Vaping Products Act (TVPA), which focuses on tobacco products and complements the first review on the TVPA’s vaping-related provisions. The second review recommends prioritising First Nations, Inuit, and Métis engagement, cooperation, and reconciliation, addressing barriers to cessation, strengthening enforcement, increasing transparency, and addressing industry interference. It also addresses concerns over the access to and potential appeal of certain new nicotine replacement therapies to youth, specifically the new nicotine pouches authorised by Health Canada in July 2023.
13th June 2024: Canada: Health Canada has issued a recall of Zyn nicotine pouches for being sold without market authorisation under Canada’s Natural Health Products Regulations. The Canadian recall covers multiple flavours of Zyn nicotine pouches, including Apple Mint, Black Cherry, Citrus, Cool Mint, Original, Espresso, Spearmint and Bellini.
5th June 2024: Canada - New Brunswick: The provincial legislative assembly approved bill 30 to amend the Tobacco and Electronic Cigarette Sales Act to strengthen the regulatory framework around the sale of tobacco, smoking supplies, e-cigarettes and e-liquids to improve overall compliance and protect the health of young people. The bill will require every vapour product retailer to be licensed and will also ban the use of vending machines. The minister of health will have the authority to create regulations requiring vendors, manufacturers or distributors of tobacco, smoking supplies and e-cigarettes (including e-liquids) to submit samples of their product to an inspector for testing. The cost of the licence will increase from CAD100 (USD73) to CAD200 (USD146). The amendments come into force on a day or days to be fixed by proclamation.
3rd June 2024: Canada - Newfoundland and Labrador: The provincial government of Newfoundland and Labrador has launched public consultations on potential legislative amendments related to tobacco and vaping products, with feedback being sought through an online questionnaire starting early June on engageNL.ca. Key topics include prohibiting tobacco sales to individuals born after a specific date, raising the legal tobacco purchase age to 21, and banning tobacco vending machines. Separate virtual sessions will be held for stakeholders and the public, and written submissions can be directed to tobaccoengagement@gov.nl.ca.
17th April 2024: Canada: The minister of finance presented the Federal Budget 2024, which proposes to amend the Tobacco and Vaping Products Act to allow information sharing between government departments for the effective administration and enforcement of the forthcoming tobacco cost recovery framework.

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