BAT Buys Dryft Sciences’ Pouches Business in Oral Nicotine Push

British American Tobacco Plc is acquiring Dryft Sciences LLC’s nicotine-pouch business as it seeks to compete in the fast-growing category of smokeless products that are catching on in the midst of a respiratory pandemic.

The deal, made by BAT’s U.S. subsidiary Reynolds American Inc., will boost its U.S. portfolio of these products from four to 28, pitting it against Swedish Match AB’s snus and Altria Group Inc.’s On! brand. BAT declined to disclose the value of the Dryft acquisition.

The new generation of oral nicotine products are essentially modern versions of chewing tobacco that don’t require spitting, ...