Turning Point Brands outlined plans to secure double-digit market share in the modern oral nicotine category by 2030, as executives detailed the company’s transition from heritage tobacco into a broader nicotine and consumer products business. Speaking at the 17th Annual Midwest IDEAS Conference on Wednesday, CEO Graham Purdy projected the modern oral market will expand to at least $10 billion by the end of the decade, up from an estimated $5 billion at the close of 2025.
The Louisville-based company, which operates under the New York Stock Exchange ticker TPB, reported net sales of $463 million in 2025, a 42.5% increase from $325 million in 2023. Adjusted EBITDA reached $120 million last year, while gross profit rose to approximately $264 million, with gross margins holding near 57%. Leverage improved to less than 1.0x from 2.7x in 2023. Modern oral products accounted for 42% of total revenue in 2025, up from negligible presence prior to 2024.
Purdy emphasized a multi-brand strategy to capture market share, citing the company’s two primary modern oral brands: FRĒ, a high-performance nicotine pouch launched in early 2024 with brick-and-mortar retail distribution, and ALP, a 50-50 joint venture with the Tucker Carlson Network introduced at the end of 2024. FRĒ is available in strengths ranging from 3 to 15 milligrams and leverages sponsorships with UFC, PBR, and NASCAR. ALP targets consumers favoring an irreverent brand tone and is positioned in 3, 6, and 9 milligram formats. The company also highlighted Nu-X as a future brand property within the modern oral segment.
Turning Point Brands’ modern oral category grew 128% year-over-year in the second quarter of 2025, following a 140% compound annual growth rate since the first quarter of 2025. The company’s sales force expanded by 100% in 2025 and is expected to grow another 50% in 2026. Chain account distribution increased 70% over the period, and the company estimates it holds roughly 5% of the total modern oral market, with approximately 50% share of the online direct-to-consumer segment.
Heritage brands remain a core pillar, with Stoker’s chewing tobacco achieving approximately 30% market share, up from 6% in 2022, and about 60% share in large-format tubs. The Zig-Zag portfolio retained its leadership in premium rolling papers and make-your-own cigar products. The company employs nearly 500 people and distributes products to approximately 265,000 retail outlets across the U.S., serviced by roughly 1,000 distributors.
Purdy noted that modern oral gross margins could approach 70% with domestic production, though current manufacturing in India incurs higher costs due to air freight and tariff pressures. The company’s leverage profile has strengthened significantly, declining from 2.7x in 2023 to less than 1.0x in 2025, reflecting improved financial discipline amid industry headwinds. TPB’s stock has declined 38% over the prior six months, according to InvestingPro data, which also indicates the shares are slightly overvalued relative to fair value estimates.
