Turning Point Brands (TPB) 17th Annual Midwest IDEAS Conference summary

Strategic vision and market outlook

• Aims to achieve double-digit market share in the modern oral nicotine category by the end of the decade, targeting a $10 billion market size and $1 billion in sales.

• Modern oral products are positioned as a growth engine, with current market share around 5% and a focus on expanding both online and bricks-and-mortar presence.

• Multi-brand strategy with FRĒ and ALP targets different consumer segments, leveraging a joint venture with Tucker Carlson for ALP.

• Investments are focused on scaling distribution, omni-channel reach, and marketing to drive awareness and sales.

• Plans to double store count to reach 10% market share, emphasizing expansion in chain convenience stores.

Brand portfolio and competitive advantages

• Operates heritage brands in tobacco (Stoker's), cannabis accessories (Zig-Zag), and modern oral (FRĒ, Nu-X, ALP), holding leading positions in several categories.

• Differentiates through direct-to-consumer expertise, robust online channels, and deep retail/distributor relationships.

• Modern oral products offer unique features such as moist pouches and a broad range of nicotine strengths, addressing gaps left by competitors.

• FRĒ targets high-performance consumers, while ALP appeals to everyday, independent users.

• Legacy brands provide stable cash flow, funding innovation and growth in emerging categories.

Financial performance and operational execution

• Net sales grew from $325 million in 2023 to $463 million in 2025, with adjusted EBITDA reaching $120 million.

• Modern oral segment saw 128% year-over-year growth in Q2 and a 140% CAGR since Q1 2025.

• Gross margin remains stable at 57%, with future potential to reach 70% as production shifts domestically.

• Leverage profile improved from 2.7x in 2023 to less than 1x in 2025.

• Investments in sales force and slotting fees are front-loaded, with expected cost leverage as distribution scales.