Feds ‘open’ to loosening rules banning nicotine pouch sales at convenience stores

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OTTAWA — The federal government is considering loosening some of its rules around the sale of nicotine pouches that could see the increasingly popular product sold in Canadian convenience stores, National Post has learned.

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One senior federal government source told National Post that the “openness” to change existing regulations comes amid pressures from certain provinces as well as the convenience store industry.

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“There is interest on our end” to loosen regulations and allow the products to be sold in convenience stores again, said the source who was granted anonymity in order to discuss private deliberations openly.

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But the source insisted that no decision has been taken yet and that the file isn’t a priority for Ottawa, comments confirmed by two other federal or provincial government sources.

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Nicotine pouches like Zonnic and Zyn, which are placed between the lip and gum and gradually release nicotine, are a controversial product that has been strictly regulated since 2024.

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Currently, Imperial Tobacco Canada’s Zonnic is the only nicotine pouch product approved by Health Canada for sale in the country.

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The ministerial regulations established under then prime minister Justin Trudeau capped the products’ concentration at 4 mg of nicotine per pouch and limited flavours to mint and menthol. They also barred any packaging design that could make the product appealing to minors.

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The regulations further required the products to only be sold behind the counter at pharmacies, whereas they could previously be sold where tobacco products are available, such as convenience stores.

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The Liberal government argued at the time that the strict regulations were necessary because the products potentially presented “a risk of injury to health” and should not appeal to young people.

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But some or all of that could change if the federal government bows to pressure from Alberta, Ontario as well as convenience store giant Alimentation Couche-Tard.

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Alberta Premier Danielle Smith has been a vocal proponent for Ottawa to ease up its restrictions on nicotine pouch products. In March, she wrote to Prime Minister Mark Carney asking why nicotine pouches were subject to more restrictive sales models than other nicotine pouches or cigarettes.

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But in the background, the Ontario government has also lobbied the Carney government to loosen the 2024 regulations on nicotine pouches to allow them to be sold in convenience stores, National Post has learned.

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One government source described it as “very quiet diplomacy” and said Ontario Health Minister Sylvia Jones had brought it up during a meeting with her federal counterpart in recent months.

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They noted it isn’t a priority for Ontario, but said that there could be an economic opportunity for the province should a foreign pouch maker decide to start manufacturing their products in Canada if the 2024 regulations are loosened.